Samsung Agrees to Pay $2.3 Million to Resolve False Claims Allegations

iStockphoto/Thinkstock(NEW YORK) — Samsung Electronics America has agreed to pay $2.3 million to “resolve allegations” against the company.

According to the Department of Justice, Samsung had been accused of causing the submission of false claims for products sold on General Service Administration Multiple Award Schedule contracts. The electronics distributor allegedly provided resellers with false information about where products had been manufactured. That misinformation, the DOJ says, caused those resellers to provide inaccurate information to federal agencies, claiming that products made in countries not covered under the Trade Agreements Act (TAA) of 1979 were made elsewhere.

The Acting Inspector for the General Services Administration, Gen. Robert C. Erickson, said in a statement that it is, “unacceptable to sell unauthorized foreign electronics to the United States.” According to the DOJ, resellers believed they were offering electronics made in TAA-designated countries, such as South Korea or Mexico, when many of the products were manufactured in China.

The Trade Agreements Act of 1979 generally requires the U.S. to purchase products made either in the U.S. or in designated countries with which the U.S. has a trade agreement.