Sydney - Samsung Australia is to pay a penalty of A$14 million ($9.65 million) over misleading claims about a water-resistance feature in some of its smartphones.

The court ruling came after Australia's competition regulator said on Thursday said that between March 2016 and October 2018, the company ran in-store and social media advertisements that claimed the phones could be used in pools or sea water.

Samsung Australia admitted to misleading buyers of some of its 'Galaxy' phones about the water-resistance level, the Australian Competition & Consumer Commission (ACCC) said. The regulator had first sued the company in July 2019.

Since around February 2016 Samsung advertisements depicted the phones as suitable for use in oceans and pools, said the ACCC.

The ACCC received hundreds of complaints saying the smartphones did not function properly or even stopped working entirely after being exposed to water.

The claims "promoted an important selling point for these Galaxy phones. Many consumers who purchased a Galaxy phone may have been exposed to the misleading ads before they made their decision to purchase a new phone," said ACCC Chair Gina Cass-Gottlieb.

-Reuters