NEWARK
- Samsung America, Inc. and the Office of
the Attorney General through its Division
of Consumer Affairs have entered into an Assurance
of Voluntary Compliance (AVC) that concludes
an investigation into the company’s
business practices related to repairing home
appliances under warranty or service contracts.
As
part of this settlement, any consumer complaints
received about Samsung America related to
home appliance repairs will be forwarded by
the Division to the company over the next
two years. Samsung America will refer any
unresolved complaints to the Division’s
Alternative Dispute Resolution (“ADR”)
Unit for resolution through binding arbitration.
Samsung
America, based in Ridgefield Park in Bergen
County, will pay $50,000 to the Division,
plus $14,600 in reimbursement of investigative
costs and attorneys’ fees. The company
made no admission of violating any laws in
settling the state’s investigation.
“Consumers
will be told all applicable charges, including
those for parts and labor, when appliances
are repaired under warranty or through service
contracts. Consumers are entitled to know
their out-of-pocket costs and this settlement
requires Samsung America to provide that information,”
said David Szuchman, Consumer Affairs Director.
Under
the AVC, Samsung America agreed to:
-
Not engage in any unfair acts or deceptive
practices in the conduct of its business
in the state and to comply with all applicable
state and/or federal laws, rules and regulations;
-
Provide consumers with all required home
appliance warranties and service contracts;
- Disclose
to consumers all diagnostic charges and
other set fees and the methods to determine
the total charge, including the charges
for labor and parts, when performing appliance
repairs. (Not applicable when Samsung refers
out-of-warranty home appliance repairs to
an independent service network.)
- Honor
all Samsung home appliance warranties and
service contracts and to complete all contracted-for,
in-warranty repair work, whether completed
by Samsung or through an independent service
network;
- Provide
consumers a toll free customer service telephone
number to address any post order inquiries
concerning home appliances, and to clearly
disclose the telephone numbers to consumers;
- Make
available a customer service manager and/or
supervisor when the consumer calls the toll-free
customer service telephone number and makes
such a request.
- Respond
to consumer complaints or requests for refunds,
credits or other adjustments within five
(5) business days of its receipt of the
consumer’s telephone call, e mail
or letter; and
-
Implement training and other programs, as
necessary, to instruct its customer service
representatives as to new home appliances
and/or changes in policies and procedures
including, but not limited to, those concerning
billing practices.
Deputy
Attorney General Jeffrey Koziar of the Consumer
Fraud Prosecution Section represented the
state in this matter.
Consumers
can file complaints with the Division on its
Web site at www.nj.gov/oag/ca/ocp/ocpform.htm
or by calling 1-800-242-5846
(toll-free within N.J.) or 973-504-6200.
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