Samsung to pay $2.3 million for lying to the US government

August 20, 2014

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According to the Washington Post, Samsung has agreed to pay the US government $2.3 million to settle charges that it intentionally lied to federal agenciesĀ about where a numberĀ of its products were manufactured.

Federal agencies are required to purchase products made in the United States or withĀ countries that the USĀ has a trade agreement with. Yet, when federal agencies bought products from Samsung, they were under the belief that specific productsĀ were manufactured in South Korea or Mexico, which are covered by trade agreements. Unfortunately, the Samsung products were actually manufactured in China which doesĀ not have a full tradeĀ agreement with the US.

According to the Justice Department, Samsung intentionally lied about where the products were made. In fact, this was only brought to life after aĀ whistleblower, Robert Simmons, brought forth the specifics of the subject to the Justice Department.

The Department of Justice has stated that theĀ settlement is not an admission of liability by Samsung who is not commenting on the settlement.

(Correction: The Department of Justice stated that there was no admission of liability, not Samsung as previously reported)