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Samsung U.S. Unit Settles Rebate Claims Probe With Spitzer
Oct. 20 (Bloomberg) -- Samsung Electronics Co.'s U.S. unit must pay
more than 4,100 manufacturer rebate claims as part of a settlement
agreement with New York Attorney General Eliot Spitzer.
Samsung Electronics America Inc., based in Ridgefield Park, New
Jersey, will pay $200,740 to consumers nationwide for rebates on
electronic merchandise manufactured by the company, Spitzer said in a
statement.
Spitzer said the Samsung unit denied rebates submitted by consumers in
multiple-unit dwellings such as apartment buildings because of a
clause in its program that limits rebates to one per household.
``Samsung's rebate program, which restricted payment to the first
consumer at a particular address to file a claim, was unfair to the
millions of consumers who reside in multiple dwellings,'' Spitzer said
in the statement.
Once the company issued a rebate to one consumer, any rebate form
submitted by another consumer at the same address was denied even if
the person lived in a different apartment. The rebates ranged from $10
to $150 in value.
As part of the settlement, Samsung agreed to modify its rebate
practices and also pay New York state $50,000 to cover the cost of the
investigation.
Samsung Electronics America spokeswoman Tara O'Donnell didn't return a
phone message seeking comment.
Shares of South Korea-based Samsung Electronics Co., the world's
second-biggest chipmaker, fell 2.3 percent to 428,500 won yesterday in
Seoul.
To contact the reporter on this story:
Sophia Pearson in Wilmington, Delaware at spearson3@bloomberg.net
To contact the editor responsible for this story:
Pat Oster at poster@bloomberg.net
Last Updated: October 20, 2004 14:23 EDT
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