Australian Competition and Consumer Commission v LG Electronics Australia Pty Ltd

Case

[2018] FCAFC 96

27 June 2018


Details
AGLC Case Decision Date
Australian Competition and Consumer Commission v LG Electronics Australia Pty Ltd [2018] FCAFC 96 [2018] FCAFC 96 27 June 2018

CaseChat Overview and Summary

The Australian Competition and Consumer Commission (ACCC) appealed against the decision of the Federal Court of Australia in relation to claims that LG Electronics Australia Pty Ltd had engaged in misleading or deceptive conduct in contravention of the Australian Consumer Law (ACL). The primary judge had dismissed the ACCC's claims, but the appeal was allowed in part. The appeal centred on whether LG had made false representations concerning the existence, exclusion, or effect of consumer guarantees under the ACL.

The legal issues revolved around whether LG had breached sections 18(1) and 29(1)(m) of the ACL by falsely representing that consumer guarantees concerning acceptable quality did not exist or were excluded due to the expiration of LG's manufacturer's warranty. The court needed to determine if such representations constituted misleading or deceptive conduct, regardless of whether the consumers were actually misled by the statements.

The court held that while the consumers were aware that the representations were false, LG still contravened the ACL by making them. The false representations about the non-existence or exclusion of consumer guarantees due to the warranty expiration constituted misleading or deceptive conduct. Therefore, the appeal was allowed in part regarding these specific instances. The court set aside the previous orders and remitted the matter to the primary judge for further determination of relief, including potential pecuniary penalties and costs. The court also directed the parties to confer and submit agreed or competing orders regarding the costs of the appeal.
Details

Areas of Law

  • Consumer Law

Legal Concepts

  • Consumer Protection

  • Misleading or Deceptive Conduct

  • Compensatory Damages