LG to pay $3m after false energy claims -

ONE of Australia's largest electronic companies is facing a restitution bill of more than $3 million after being found guilty of misrepresenting the energy efficiency of its appliances.
LG Electronics Australia agreed yesterday to establish a $3.1 million consumer rebate fund after the Australian Competition and Consumer Commission found the company had inflated the energy efficiency star rating system of more than 15,000 air-conditioners sold between 2002 and 2005.
Independent tests showed that in two of the five deficient models, the star rating on the LG label was double the accurate rating, while the energy efficiency of one model did not meet the State Government's mandatory Minimum Energy Performance Standard.
As a result, the commission concluded, it was likely that the five air-conditioner models tested were using more electricity and consequently costing consumers more to run than LG had claimed.
"The integrity of the Australian energy star rating system is important because it provides a powerful market-driven incentive for manufacturers to improve the energy performance of their products," said the commission's chairman, Graeme Samuel.
"Consumers need to have confidence that they can use the star rating of an air-conditioner to make an informed choice between competing brands."
Together with LG, the commission has calculated the potential difference in operating costs for each of the five models, and LG has agreed to refund the difference to consumers. A rebate table has been posted on the company's website.
In a statement issued by LG yesterday, the company also pledged to use independent testing facilities to rate the energy efficiency of its air-conditioners.
Kelly Burke