LG refrigerator warranty scandal: Difference between revisions
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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== | ==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. | 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== | ==The Linear Compressor Issue== | ||
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===Cost to Consumers=== | ===Cost to Consumers=== | ||
While LG's warranty covers the compressor part itself, 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> | *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> | *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== | ==Arbitration Controversy== | ||
In 2024, LG | In 2024, LG sought to prevent a class action lawsuit, citing arbitration notices that appeared in three locations: | ||
#On the product box | #On the product box | ||
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===Legal Issues with Notice=== | ===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> | *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> | *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) | *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. | 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. | ||
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[[Category:Incidents]] | [[Category:Incidents]] | ||
[[Category:Anti-Consumer Practices]] | [[Category:Anti-Consumer Practices]] | ||
[[Category:Lawsuits]] | [[Category:Lawsuits]] | ||
[[Category:LG]] | |||