In Australia, Samsung was fined $14 million for misrepresentations. The company claimed that seven phones in the Galaxy series are waterproof, but that they will not work after being used in swimming pools or ocean water. The lawsuit was filed in 2019 through ads related to seven Galaxy smartphones, the Australian Competition and Consumer Commission (ACCC). The ACCC has sued Samsung for misleading and deceiving customers with claims about smartphones with more than 300 ads since February 2016.

Advertisements showing the phones being waterproof appeared on social media, the internet, television, billboards, brochures and other media. They’ve been used in swimming pools and beaches, and Samsung has also advertised them as being waterproof to a depth of 1.5 meters for 30 minutes.

However, the calculation applies to a much smaller ad group. In solving the case, Samsung admitted that nine ads for the seven devices were misleading. The company also acknowledged that if the devices are used in salt water or swimming pools, the possibility of damaging the phone’s charging port due to corrosion could be significant.

Since then, Samsung has fixed this issue by replacing hardware and software on other Galaxy phone models. Judge Michael Murphy approved the agreement between the smartphone manufacturer and the Australian Watchdog. He said many consumers will use their phones relying on the ideas shown in these ads.

He added that the $14m fine would act as a deterrent, adding “a real and adequate bite” to Samsung Australia’s 14% profits over the past six years. He also said that the company is collaborating to resolve the issue after years of opposition to the ACCC lawsuit.

ACCC chief Gina Cass-Gottlieb welcomed the decision, saying: “This penalty is a strong reminder to businesses that all product claims must be proven. The ACCC will continue to take action to compel businesses that mislead consumers by claiming the quality or benefits of their products.”

Samsung will pay a fine of $14 million in addition to $200,000 as a contribution to ACCC costs within 30 days of ordering.