A home appliances brand has been hit with a lawsuit alleging that the company sold “lackluster” new home items at inflated prices.
A judge in Canada is set to rule next week on whether Samsung’s new appliances violate Canada’s consumer protection laws.
The lawsuit filed last week by the Consumer Protection Society of Ontario and the Canadian Home Appliance Association alleges that Samsung sold new models of home appliances at prices that were too low to qualify for subsidies that could help offset the cost of repairs.
Samsung sold more than 200,000 new Samsung TVs in Canada last year, according to the lawsuit, which was filed in the U.S. and is the first of its kind to allege the company has misled consumers.
The company is also accused of marketing new models to consumers at inflated retail prices, the suit alleges.
The consumer group is seeking to force Samsung to refund consumers and to stop selling new products at inflated wholesale prices.
The complaint, filed in Ontario Superior Court in Toronto, said Samsung’s marketing and sales of new Samsung appliances were “unacceptable” and that “there are no reasonable explanations” for why the company would offer such a low price.
The products were advertised at wholesale prices of $2,200 for a 32-inch flat screen TV, $3,300 for a 42-inch TV, and $4,600 for a 64-inch model, according the lawsuit.
It also said Samsung did not tell consumers about the discounts or other discounts available on newer models, the lawsuit said.
It was Samsung’s second-lowest selling brand in Canada.
Its previous low was $3.79 for a new 32- or 42- inch TV, the complaint said.
In the U, Samsung’s brands are Apple and LG, which each sold fewer than 10,000 units in 2014.
Samsung’s U.K.-based brands include Samsung TV, Samsung Gear, Samsung Home, Samsung Smart TV and Samsung Gear.
The company’s U:U.S.-based brand, Samsung Electronics, sells phones and appliances in the United States and in Europe.