Australian watchdog sues Samsung over misleading waterproof phone ads

The suit, which if successful could result in multi-million dollar fines, centres on more than 300 advertisements in which Samsung showed its Galaxy phones being used underwater in pools and the sea

Australia's competition regulator said on Thursday it is suing the local unit of South Korea's Samsung Electronics Co Ltd, alleging it misled consumers by promoting its Galaxy smartphones as water resistant.

The suit, which if successful could result in multi-million dollar fines, centres on more than 300 advertisements in which Samsung showed its Galaxy phones being used underwater in swimming pools and the sea.

The Australian Competition and Consumer Commission (ACCC) said the world's largest producer of smartphones had not conducted sufficient testing to know the actual effects of fresh water or saltwater exposure on its phones. 
 

"The ACCC alleges Samsung's advertisements falsely and misleadingly represented Galaxy phones would be suitable for use in, or for exposure to, all types of water ... when this was not the case," ACCC Chairman Rod Sims said in a statement.
 

Samsung on its website said it stands by its advertising, complies with Australian law and will defend the case.
 

The suit is another blow for the electronics giant which suffered reputational damage in 2016 when its Galaxy Note 7 smartphones suffered a costly recall after being found fire-prone.