AN ELECTRONICS manufacturer with a history of making false environmental claims has been caught doctoring fridges to make them appear more energy efficient.
LG Electronics has agreed to compensate potentially thousands of consumers after two of its fridges - models L197NFS and P197WFS - were found to contain an illegal device that activates an energy-saving mode when it detects room conditions similar to those in a test laboratory.
The so-called circumvention device was discovered last month by the consumer advocacy group, Choice.
The device detects test conditions - typically 22 degrees - and activates the energy-saving mode, creating the impression of lower running costs and energy usage. The devices have been banned in Australia since 2007.
In reality the fridge, which has a 3.5 star energy rating, costs an extra $250 to run over 10 years and can severely affect food quality because the fridge can shut off when opened.
Choice's tests found the energy consumption of the fridge was 876 kilowatt hours a year, compared to the advertised 738kWh.
Yesterday, the chief executive of Choice, Nick Stace, said the fridge was an extreme example of a company making false or misleading environmental claims, known as ''greenwashing''.
''This fridge is both a potential danger to your food, your wallet and the environment,'' Mr Stace told the Choice National Consumer Congress at Luna Park.
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.
The Herald understands the ACCC is investigating the latest matter. An ACCC deputy chairman, Peter Kell, would not comment on the investigation, but said consumer laws due to be introduced this year would give regulators greater powers to police claims.
He said the new legislation, the biggest overhaul of consumer law since 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, a new star rating labelling system and energy rating calculation will be introduced for all fridges.
A spokeswoman for electrical retailer, The Good Guys, said it received a manufacturer's recall notice from LG for the L197NFS fridge on February 26.
She said the company would offer customers a full refund and would pursue the matter with LG Electronics.
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