2 Investigators: Some Samsung TVs Won't Turn Back On; Owners Get Repair Bills

By: Pam Zekman | 02/09/2012

CHICAGO (CBS) — Samsung Electronics is now admitting that millions of its flat screen TV's may have problems that cause them to just shut down.

As 2 Investigator Pam Zekman reports, owners have been complaining about it for years and were unable to get help.

One of them was Brian Kowalkowski, who paid $1,500 for his new Samsung LCD television two years ago. Recently it began clicking, until it eventually turned on. Then, it would not turn on at all.

"It was just dead," Kowalkowski says. "It was the most amount of money I've ever spent on a TV, so I had a hard time believing it. I had no idea what the problem was but I knew I had a serious problem."

When Brian checked on the Internet, he found thousands of people with the exact same problem. And it turns out repair shops are quite familiar with the problem as well.

It's caused by apparently defective capacitors that help store energy to smoothly operate the televisions. Each capacitor is relatively inexpensive, about $5 a piece. But if it's defective it can overheat and shut down your TV.

"You can identify the bad capacitors by the swollenness of the top portion of the capacitor," Ray Samrah, ABT Electronics Service Manager, says.

"It's less expensive to repair and replace these capacitors versus replacing the whole TV," he adds.

Class-action lawsuits filed in three states charge that Samsung Electronics has known for years about the "design and materials defect" that can result in "capacitors failing." The suits charge that Samsung failed to notify its customers or issue a recall.

It's a reaction corporate strategy experts see all the time.

"I think companies are doing the cold hard math of what an actual recall is going to cost them," Paul Larson, an equities strategist at Morningstar, says. "Even if it's a relatively inexpensive part, it's quite a significant expense or it can be.

Because his warranty period ended, Samsung told Kowalkowski he had to pay to get his TV repaired. It cost $167 at a television repair shop near his home.

"It should have been zero," Kowalkowski said. "I feel it should have been taken care of by Samsung."

Samsung told CBS2 in a written statement that it confirmed in early 2010 that a small percentage of certain models manufactured between 2006 and 2008 had issues caused by capacitors.

But the Samsung spokesman said he could not tell us what the company's definition is of a "small percentage."

CBS 2 has learned that a Samsung attorney admitted in an Oklahoma courtroom, where one of the class-action cases is pending, that as many as 7.5 million televisions could have problems.

The company is close to settling that case, which would result in a national resolution of the problem, Samsung says. Once the settlement agreement is approved by the judge, the company will notify consumers about how they can get repairs needed in the future or reimbursed for repairs they have already paid for.

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