LG Energy in enforceable undertaking for faulty solar batteries
Make us a preferred source
Make us a preferred source on Google
The news: Battery manufacturer LG Energy Solution has provided an enforceable undertaking to the competitions regulator as part of its efforts to alert and protect consumers from faulty solar storage batteries which can overheat and catch fire without warning.
The numbers: Since 2020, LG has issued voluntary recalls affecting around 18,000 affected batteries. There have been 15 incidents of property damage caused by the solar batteries in Australia, including a house in Victoria that was destroyed. There are also around 4,400 batteries that are yet to be located.
LG is the largest producer of electric vehicle batteries outside of China, holding a global market share of 14%.
The context: The South Korean-based company has committed to undertake a widespread advertising campaign to alert consumers about safety risks with the batteries subject to the recalls, and try to ensure that all affected batteries are remedied within 12 months.
As part of the undertaking given to the Australian Competition and Consumer Commission (ACCC), LG has agreed to replace affected batteries or provide refunds to consumers if current investigations conclude that a software update is no longer an appropriate remedy. LG will also provide compensation to consumers with these batteries for higher energy bills incurred during the period their battery is switched off.
The ACCC had been concerned that LG’s advertising to date was inadequate in alerting consumers to the dangers of the batteries. Following advice from the regulator earlier this year, assistant treasurer Stephen Jones issued a proposed recall notice — which is a formal step towards a compulsory recall — due to concerns that LG had not taken satisfactory action to prevent the affected batteries causing injury to customers.
LG then met with the ACCC and offered to make significant additional commitments via a court-enforceable undertaking. The ACCC said it may seek orders in the Federal Court to enforce the undertaking if LG fails to comply with the commitments it has made in the undertaking.
The source: ACCC media release
