Enhanced Customer Care Program
Under the LG Refrigerator Class Action Settlement, LG is implementing the following immediately:
- LG will provide Settlement Class Members with an extension of their limited warranty to five (5) years after the date of purchase of the LG Refrigerator at issue, with Labor Costs to be fully covered and the other Enhanced Customer Care benefits described above.
- For avoidance of doubt, LG will continue to provide the original limited warranty for the parts related to the cooling system, and under no circumstances shall any provision of this Settlement Agreement be construed as reducing or limiting the obligations of LG under its limited warranty.
- The Enhanced Customer Care payments will be provided by LG directly to Settlement Class Members.
- Through the earlier of the (i) Effective Date (which shall be 30 days after the Court issues its Final Approval Order if there is no appeal); or (ii) September 22, 2021, LG will provide free warranty and Enhanced Customer Care Program benefits to any Settlement Class Member who experiences a No-Cooling Event, regardless of whether or when their warranty expired.
- As a matter of convenience, Settlement Class Members may use, but are not required to use, the Enhanced Warranty Claim Form to request monetary benefits under the Enhanced Customer Care Program.
- Payments to Settlement Class Members under the Enhanced Customer Care Program will be made in cash and sent directly by LG to qualifying Settlement Class Members within a commercially reasonable period, as needed for verification, provided that, in no event shall the payment be made later than 60 days from the receipt of an Enhanced Warranty Claim.
The term “Enhanced Customer Care” includes the following measures to be implemented by LG and to exist for a period of at least three (3) years and to be effective during the extended warranty period for any Settlement Class Member:
- creating and maintaining a dedicated customer care team to address No-Cooling Events experienced by Settlement Class Members on a timely and expedited basis, with live operator support during regular business hours, sufficient to handle call volume without unreasonable delay;
- increasing the number of LG’s DMST’s (which has more than doubled since 2019), and using commercially reasonable best efforts to maintain an adequate service network, expand its nationwide coverage, and ensure that LG meets or exceeds industry standards for responding to requests for warranty service;
- creating and maintaining a new program designed to provide incentives for faster repair service without sacrificing quality of repair, including a commitment that LG will undertake commercially reasonable best efforts to ensure that a DMST or an Authorized Repair Service Provider, as available, arrives at a Settlement Class Member’s home as quickly as is practicable, within seven (7) days of receiving the Settlement Class Member’s initial request for service, and with all necessary parts on hand;
- developing a new mobile service application for the use of service technicians, including both DMST and Authorized Repair Service Providers, to improve accuracy in the diagnosis of problems with LG Refrigerators;
- investing in efforts to develop and upgrade parts and software to improve the cooling performance of LG Refrigerators;
- implementing a proactive consumer outreach program to follow up on U.S. consumers’ satisfaction level regarding LG Refrigerators and service performed on them; and
- enhancing LG Customer Care to provide Settlement Class Members that experience multiple No-Cooling Events during the warranty period as extended by the Settlement Agreement, payments as set forth in the schedule below, subject to LG’s verification that the cause was not the result of a Non-LG Cause. Settlement Class Members who experience multiple No-Cooling Events will be notified for their eligibility for such payments and the amounts of the payments and shall be provided with a form for submitting claims for such payments.
Enhanced Customer Care Program – Payments for No-Cooling Events
Pursuant to Paragraph A.1.u of the Settlement Agreement, Settlement Class Members that experience a No-Cooling Event during the warranty period as extended by the Settlement Agreement shall receive payments under the following categories, subject to LG’s verification that the cause was not the result of a Non-LG Cause:
- Settlement Class Members who experience three (3) or more No-Cooling events shall receive at a minimum $500 up to the purchase price (considering usage period);
- Settlement Class Members who experience a delay of more than thirty (30) days for a repair by LG or an Authorized Repair Service Provider shall receive at a minimum $400, up to the purchase price (considering usage period); and
- Property Loss will be reimbursed up to $3,500, upon submission of reasonable proof.
The term “Enhanced Warranty Claim” means a claim made by a Settlement Class Member for monetary relief under the Enhanced Customer Care Program either directly to LG or via the submission of an Enhanced Warranty Claim Form pursuant to this Settlement Agreement.
The term “Enhanced Warranty Claim Form” means the form that Settlement Class Members may for convenience use, but are not required to use, to submit claims to LG for monetary relief under the Enhanced Customer Care Program pursuant to this Settlement Agreement, which is to be substantially in the form of Exhibit 4 hereto.