Samsung America settles with AG Milgram

By Ashley Stinnett | Aug 6, 2009

Anne Milgram

NEWARK, N.J. (Legal Newsline) - New Jersey Attorney General Anne Milgram has reached a settlement with Samsung America Inc., resolving claims the company violated the state's Consumer Fraud Act.

The attorney general's office entered into an Assurance of Voluntary Compliance Agreement with the electronics maker, resulting in any future consumer complaints being forwarded to the company directly from the state's Consumer Protection Division.

Under the terms of the agreement, Samsung must cease and desist from any unfair business practice, provide customers with all required home appliance warranties, disclose to consumers any and all fees associated with purchases, honor all warranties, provide consumers with a toll free complaint hotline and respond to all complaints in a timely fashion.

The company must also pay $50,000 to the Consumer Protection Division along with $14,600 to the state in legal fees and penalties, Milgram said.

"Consumers will be told all applicable charges, including those for parts and labor, when appliances are repaired under warranty or through service contracts," Consumer Affairs Director, David Szuchman said.

As part of the agreement, Samsung must also implement new customer complaint training procedures for its employees. In agreeing to the settlement, Samsung did not admit to any wrongdoing.

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