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Samsung Ordered to Pay $9.8 Million for Misleading Phone Ads

Several phone models weren't as water resistant as Samsung's commercials suggested, an Australian judge ruled.

MaryBeth Monaco-Vavrik Writer Intern
MaryBeth is a writer intern with the CNET Home team covering a wide array of topics such as appliances, tech, money, wellness and health. She is finishing her undergraduate degree in political science and communication studies at Davidson College in North Carolina, where she works to reduce sexual violence. She believes in the power of information, racial and gender equity, communication and a good sit-com.
MaryBeth Monaco-Vavrik
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The Samsung Galaxy S7 was launched in 2016.

Sarah Tew/CNET

An Australian judge on Thursday ordered Samsung to pay 14 million Australian dollars (around $9.8 million) in penalties for misleading ads about the water resistance of some of its phones, as earlier reported by the Associated Press.

The ads promoted the water-related capabilities of seven of Samsung's Galaxy models released in 2016 through 2018: the S7, S7 Edge, A5, A7, S8, S8 Plus and Note 8. However, customers found that the charging ports could be damaged if they charged their phone while it was still wet. Samsung sold 3.1 million of these models in Australia, but the number of affected customers is unknown. 

"Samsung Australia's water-resistance claims promoted an important selling point for these Galaxy phones. Many consumers who purchased a Galaxy phone may have been exposed to the misleading ads before they made their decision to purchase a new phone," Australian Competition and Consumer Commission Chairperson Gina Cass-Gottlieb said in a statement. 

Samsung must also pay 200,000 Australian dollars ($140,000) to cover the cost of investigation. The company reportedly agreed to the fines and has 30 days to pay them both. 

"This penalty is a strong reminder to businesses that all product claims must be substantiated," said Cass-Gottlieb.

Samsung did not immediately respond to a request for comment.