Samsung is facing a possibly expensive battle in Australia for different ads it had run for its various smartphones. Australian regulators filed a lawsuit against the Korean smartphone manufacturer, which alleges that the ads that were run were misleading customers.
According to the regulator, Samsung's ads were presenting its devices to be fully water-resistant up to 1.5 meters for up to 30 minutes. The suit claimed that some of the ads that were circulated even showed the devices being used in places like beaches, oceans, and swimming pools.
The chair for the Australian Competition and Consumer Commission, Rod Sims, mentioned in a statement on Thursday that Samsung's ads were clearly misleading and false.
The ads led customers to believe that the devices could be used in all types of water activities without worry. One ad showed a man using a Samsung smartphone while being underwater inside a pool. Another ad showed a female surfer in the ocean.
Most of the higher-end smartphones that Samsung sells are waterproof rated at IP67 or IP68. However, these devices are generally not waterproof, but they are "splash-proof." This means that the devices can survive contact with water for short periods of time.
The commission stated that Samsung had refused to honor warranty claims for devices that were damaged after they were used in the water despite the claims on its ads. This had resulted in various complaints against the company, which eventually led regulators to an investigation into its marketing practices and content.
The lawsuit against Samsung targets more than 300 different advertisements that were circulated in various mediums such as television, radio, the internet, and on social media.
The targeted ads that were run since February 2016 covers over 15 different Samsung Galaxy models, including models such as the Galaxy Note 7 and the Galaxy A8.
The suit points out that Samsung's false advertising was further made clear by a warning placed on its website that stated that users are advised not to use their smartphones on the beach or in pools.
If courts do find Samsung guilty of false and misleading advertising, the Korean company could be facing fines in the millions of dollars. As of the recent update in Australian competition regulations, the highest penalty for false advertisement is around $7 million.
The world's largest smartphone brand responded that it would be defending itself against the lawsuit in Australia. The company is currently the second-most-popular smartphone brand in Australia, right behind Apple. In 2018, the company sold more than 4 million smartphones in the country.
