LG Electronics Penalized by Korea Fair Trade Commission for False and Exaggerated Advertising Claiming Automatic Cleaning in Clothes Dryers...

False and Exaggerated Advertising of Performance, Effectiveness, and Operating Conditions of Automatic Cleaning System
Correction Order, Public Announcement Order, and Fine of 390 Million KRW Imposed

[Sejong=Asia Economy Reporter Joo Sang-don] LG Electronics has been sanctioned by the Fair Trade Commission for false and exaggerated claims regarding the automatic cleaning function of the condenser in its electric clothes dryers. The condenser is a key component of the dryer that requires regular cleaning and maintenance because dust accumulation can reduce drying efficiency and cause product issues.

On the 20th, the Fair Trade Commission announced that it decided to impose a correction order, a public announcement order, and a fine of 390 million KRW on LG Electronics for false and exaggerated advertising of the performance, effectiveness, and operating conditions of the automatic cleaning system of the condenser in its electric clothes dryers.

According to the Fair Trade Commission, LG Electronics made false and exaggerated advertisements about the performance, effectiveness, and operating conditions of its condenser automatic cleaning system through TV, digital media, product catalogs, and open market websites from January 20, 2017, to July 31, 2019. Regarding performance and effectiveness, the advertisements claimed: ▲ automatic cleaning of the condenser without the hassle of manual cleaning to keep it always clean ▲ perfect self-management ▲ always maintaining optimal condition ▲ no need to worry about the condenser. Regarding operating conditions, the advertisements stated: ▲ automatic cleaning after every drying cycle ▲ automatic cleaning of the condenser every time the dryer is used.

However, in July 2019, the Korea Consumer Agency received reports through its Consumer Injury Surveillance System (CISS) that LG Electronics’ condenser automatic cleaning function was insufficient, causing dust accumulation on the condenser. The Consumer Agency conducted on-site inspections and analyzed the problems and causes. In August of the same year, the Consumer Agency recommended LG Electronics to prepare a corrective plan to prevent dust accumulation on the condenser and to take measures such as free repairs for products already sold.

In response, LG Electronics submitted a corrective plan to the Consumer Agency and spent a total of 132.1 billion KRW on after-sales service (A/S) by December last year, and set aside 66 billion KRW in reserves for A/S costs in 2021. LG Electronics also decided to provide free warranty service for the next 10 years. As of the end of February this year, A/S has been completed for 798,000 units (99.7%) out of approximately 800,000 A/S requests.

Separately from the Consumer Agency’s recommendation for free repairs, affected consumers filed complaints with the Fair Trade Commission from October 2019 to January last year, claiming LG Electronics’ advertisements were false and exaggerated. Additionally, civil lawsuits for damages were filed between January and February last year.

Regarding this, the Fair Trade Commission judged that LG Electronics’ advertisements about the performance, effectiveness, and operating conditions of the condenser automatic cleaning system were false and exaggerated. LG Electronics argued that expressions such as “clean” are qualitative and not subject to empirical verification, and even if they were, the advertisements were supported by data from tests conducted by the company itself. However, the Fair Trade Commission stated that even without specific numerical data, the automatic cleaning function of the system is subject to empirical verification. The data submitted by LG Electronics were internal test results conducted only on one small dryer model during the development stage, and the tests were set to always activate the automatic cleaning system, whereas in actual use, the system sometimes does not operate. Therefore, the data cannot be considered valid empirical evidence.

A Fair Trade Commission official emphasized, “General consumers who see the advertisement may misunderstand or be misled to believe that the condenser automatic cleaning system operates every time the dryer is used, keeping the condenser always clean and perfectly maintained. Ultimately, this misleads consumers’ rational choices and may harm or threaten fair trade order.”

Regarding the Fair Trade Commission’s sanction decision, LG Electronics stated, “This decision concerns the verification of past advertising expressions, and the relevant advertisements were already discontinued and corrected in 2019. The company provides free upgrade services to all customers who purchased the product.”

This content was produced with the assistance of AI translation services.