South Korean consumer protection authority will embark on a review for arbitration over dispute over LG Electronics’ laundry dryers.

The Consumer Dispute Settlement Commission under Korea Consumer Agency (KCA) said on Tuesday that it will begin procedure for collective dispute mediation after owners of LG Electronics laundry dryers filed damages in complaints over excess dust and musty smell due to malfunctioning of the condenser, a key part that helps air circulation inside the dryer.

The dispute settlement comes after 247 consumers filed a class action against LG Electronics with the consumer association in July, demanding refunds on purchases after citing musty smell and mold due to condensate water inside and malfunctioning of automatic control of condensers unlike what has been promoted in the advertisement.

Under Framework Act on Consumers, the consumer authority will determine adjustment within 30 days after more than 14 days of initiation notification.

If LG Electronics accepts the commission’s adjustment decision, it will be advised to submit a compensation plan under Framework Act on Consumers, allowing other consumers using the same product but not participating in the collective suit to receive service. The consumer body decided not to accept additional applications from consumers wishing to join the dispute adjustment.

The commission will collect various opinions of parties involved including those of consumer groups and decide on the compensation amount after an independent fact-finding investigation. When settlement is made, its decision holds the same effect as reconciliation in trial.

If a business operator, in this case, LG Electronics, does not accept the association’s dispute mediation that is non-binding, consumers need to raise a separate civil suit against the company.

By Lee Ji-yong and Lee Eun-joo

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]