Court Appoints Monitor for Samsung Over Defective Refrigerator Settlement
A Tel Aviv District Court judge has appointed an independent supervisor to oversee Samsung's implementation of a settlement agreement concerning defective refrigerators. The decision comes after numerous consumer complaints alleging that Samsung systematically violated the terms of the NIS 95 million settlement approved in May 2024. Judge Noa Grossman cited the complexity and unusual nature of the case as reasons for appointing an external monitor.
Consumers have accused Samsung of preferring to offer costly refrigerator replacements rather than repairs, and of selling replacement units at inflated prices exclusively through the Mahsanei Hashmal retail chain. Complaints also detail allegations that Samsung claims a lack of spare parts, particularly for doors, and charges for technician visits that result only in photos of defects, with no intention of repair. The court noted that previous mediation attempts had failed.
Samsung has argued that it is implementing the agreement properly, investing resources in a dedicated call center and performing repairs and replacements. The company maintains that the prices offered for replacement refrigerators are recommended consumer prices, not VIP prices, and that the agreement did not obligate them to offer the lowest market price. Samsung also stated its right to use any entity, such as Mahsanei Hashmal, to fulfill the agreement, asserting it never committed to using the former importer, Smaline.
The appointed supervisor will examine the status of cases, determine necessary further actions, and assess whether Samsung has procured a reasonable number of spare parts. The monitor will also investigate if the settlement would have been implemented differently had Smaline been involved, as originally intended. A key task will be to determine fair pricing for replacement refrigerators to ensure consumers receive the intended financial benefit, and to decide on the appropriate range of replacement models. Samsung will be responsible for funding the supervisor's fees.
