Australian watchdog sues Samsung over misleading waterproof phone ads

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.