In 2018, a lawsuit against Vizio was launched in California after dissatisfied users complained about it. The case was that the manufacturer’s TVs with the declared refresh rate of 120 and 240 Hz actually had half the performance.

This was reported by Ars Technica. 

The company itself made opaque references in its marketing materials and instructions to the backlight scanning function, which is supposed to create the impression of a smoother image. However, it does not change the actual refresh rate of the matrices. The company also failed to mention the disadvantages of the technology, such as reduced brightness and noticeable flickering. 

Therefore, the lawsuit accuses the company of misrepresentation in order to stimulate sales and attempt to “sell its inferior product at a higher price, which allowed Vizio to make sales that it might not have made had it been truthful about the performance of its TVs.”

“Vizio knows, or at the very least should know, that its television with 60Hz display panels have a refresh rate of 60 images per second and that backlight manipulation methods cannot and do not increase the effective Hz (refresh rate) of a television,” the class action lawsuit says.

Vizio eventually agreed to pay $3 million. Buyers of the manufacturer’s TVs who made a purchase in California after April 30, 2014 may receive compensation in the amount of $17 to $50 (possibly less if the general fund cannot cover all compensation requests). The company is also reimbursing legal costs. Among other things, Vizio will also stop advertising its TVs with “effective” refresh rates of 120 and 240 Hz.

The agreement also states that the manufacturer “is not obligated to recall or change the labeling of Vizio TVs that have already been sold or transferred to a third party.” However, deceived customers will still be offered a “service package and limited warranty worth approximately $25.”

Vizio still denies any wrongdoing on its part and does not comment on the deal.