Editing LG refrigerator warranty scandal

A pattern of early refrigerator failures saw attempts by '''[[LG|LG Electronics]]''' to prevent consumer lawsuits using forced arbitration practices, regarding their lack of warranty coverage for failed fridges.

==Overview==
LG Electronics faced widespread consumer complaints due to systematic failures of their linear compressor refrigerators, with many reports of units failing within 2-5 years in spite of being advertised with a 10-year warranty & 20-year lifespan.<ref>[https://www.nbcbayarea.com/investigations/consumer/lg-refrigerators-failures-update/3465620/ NBC Bay Area, "Fridge failures: LG says angry owners can't sue, company points to cardboard box", February 27, 2024]</ref> The company's response to these failures has focused on attempting to force consumers into private arbitration rather than addressing the underlying product flaws, where LG cites arbitration notices that most consumers never had the opportunity to see due to them being on the delivery box which is thrown away before the fridge makes it into the customer's home or the instruction manual which is not a binding legal contract.[https://www.nbcbayarea.com/investigations/consumer/lg-refrigerators-failures-update/3465620/]

==The Linear Compressor Issue==
===Pattern of Failures===
Many documented cases show LG's linear compressor refrigerators failing well before their advertised lifespan:

*Reports of compressors failing within 24 months of purchase<ref>NBC Bay Area interview with Sunil Kardile, February 27, 2024: "The compressor dies like every year"</ref>
*Multiple customers requiring 4-5 compressor replacements within a few years
*Consistent pattern of failures happening shortly after the standard warranty period

===Cost to Consumers===
While LG's warranty covers the compressor part itself, however consumers reported large financial impacts due to:

*Labor costs averaging $1,000 per repair despite part coverage<ref>[https://www.reddit.com/r/technology/comments/1b3d8yr/comment/ksrtouv/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button Reddit discussion r/technology, January 2024: "I've had two LG fridge compressors go bad. They cover the part but not the labor and I've spent more than $1000 installing new compressors into them"]</ref>
*Extended periods without functioning refrigeration while awaiting repairs<ref>NBC Bay Area interview with Frank Rodriguez, February 27, 2024</ref>
*The purchase of replacement units after multiple failed repairs

==Arbitration Controversy==
In 2024, LG sought to prevent a class action lawsuit, citing arbitration notices that appeared in three locations:

#On the product box
#Inside the refrigerator
#In the owner's manual

===Legal Issues with Notice===
Commentators highlighted several issues with LG's arbitration notices:

*Delivery people routinely remove refrigerators from boxes before bringing them into homes so that they can fit through the door, preventing customers from seeing box notices<ref>NBC Bay Area investigation found that "nobody they talked to saw the box. The delivery guys typically took the box off before even bringing it inside."</ref>
*Internal notices and manual contents are only accessible '''''after''''' purchase completion<ref>Attorney Azar Mouzari statement to NBC Bay Area: "Consumers don't have access to an owner's manual until after they've made the purchase."</ref>
*Legal precedent from similar cases (such as Samsung's smartphone box arbitration notices) suggested that post-purchase notices may not be enforceable<ref>Professor Anna Han, Santa Clara University School of Law, NBC Bay Area interview, February 27, 2024</ref>

Professor Anna Han of Santa Clara University School of Law notes that proper notice requires both sides to "knowingly agree not to sue," questioning whether notices unseen until after purchase can constitute valid agreement.

==Consumer Response==
The issue gained widespread attention in early 2024 when attorney Azar Mouzari reported receiving "thousands of calls within a span of two weeks" from affected consumers after media coverage of the situation.<ref>Attorney Azar Mouzari to NBC Bay Area: "We received thousands of calls within a span of two weeks ... thousands"</ref> Consumer complaints centered on several key issues:

*Systematic failure of compressors
*High repair cost despite warranty coverage
*Difficult to obtain warranty service
*Unable to receive refunds or replacements for units that keep failing

==References==
<references />

[[Category:Incidents]]
[[Category:Anti-Consumer Practices]]
[[Category:Lawsuits]]
[[Category:LG]]