Energy Efficiency

Chief executive of Choice, Nick Stace said LG has made false or misleading environmental claims known as ‘greenwashing’ with regards to several of its fridges; he said ‘this fridge is both a potential danger to your food, your wallet and the environment.

LG Electronics has agreed to pay affected customers $331 to cover the unexpected increase in their power bills, but has not agreed to refund the purchase price of the fridge.

It is the third time LG Electronics has been caught making false claims about the environmental credentials of its products; in 2008 it had to repay $3 million after the Australian Competition and Consumer Commission ruled it had inflated the energy-efficiency star rating of five models of air-conditioner.

ACCC deputy chairman Peter Kell would not comment on an investigation, but said consumer laws due to be introduced this year would give regulators greater powers to police claims.

The new legislation – the biggest since consumer law in the 1970s – would give the ACCC the power to force companies to substantiate environmental, health and other claims, as well as the power to enforce harsher penalties.

From April 1 2010 a new star rating labelling system and energy rating calculation will be introduced for all fridges.

The Good Guys said it had received a manufacturer’s recall notice from LG for the L197NFS fridge on February 26 and said the company would offer customers a full refund and would pursue the matter with LG Electronics.