 |
Photo = Yonhap news |
[Alpha Biz= Paul Lee] LG Electronics, which was found guilty of exaggerated advertising, has been ordered to compensate 200,000 KRW per consumer to a group of 322 consumers who sued the company, a ruling that was upheld by the appellate court following the first trial.
According to the legal community on Monday, the Seoul High Court Civil Division 19-1 (presiding judge Hwang Seung-tae) ruled partially in favor of the plaintiffs, similar to the first trial, in a lawsuit filed by 322 LG Electronics consumers seeking damages.
LG Electronics launched its clothing dryer "Trom" in April 2016 and advertised it with phrases like "Perfect management on its own" and "Condenser auto-cleaning system that doesn't need cleaning" from January 2017 to July 2019. The condenser is a component that turns humid air produced during the drying process into water, and it collects dust, requiring periodic cleaning.
Consumers reported to the Fair Trade Commission (FTC) and filed a lawsuit, claiming that after using the product, dust accumulated in the condenser, leading to mold and odors. They sought compensation of 100,000 KRW per person. In May 2021, the FTC fined LG Electronics 390 million KRW for false and exaggerated advertising.
The first trial ruled that LG Electronics should compensate 193 consumers with 200,000 KRW each. The court stated, "Consumers' trust was created by the company's extensive advertising," adding, "The clothing dryer's functions, such as removing residual moisture, dust, and sanitizing, as well as the convenience of cleaning to prevent contamination, significantly influenced the purchase decision."
The court further ruled that the consumers suffered mental distress due to the breach of trust and expectations created by the advertising. However, the court did not accept the plaintiffs' claim of financial loss, noting that the primary function of the dryer was not compromised by the condenser's issue.
Both the consumers and LG Electronics appealed, but the appellate court upheld the first trial's decision. The appeal court also recognized the compensation claims for 221 consumers, including those who had transferred their claims, with 196 of them receiving finalized compensation as LG Electronics did not appeal further.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
