The refund rate on LCD TVs has increased to 25-30 per cent in North America despite a drop in prices by branded TV retailers.
Many vendors reduced prices for 32-inch and 40-inch LCD TVs in May in an attempt to boost sales.
However, the move has led to a rise in the number of products being returned as viewer expectations about the quality of high-definition images rises.
The introduction of HD TV broadcasts in North America has made it much easier to compare the resolution of LCD TVs, according to a report in DigiTimes.
It quotes industry sources who attribute the high refund rate for LCD to consumer dissatisfaction with low-priced products that did not meet their original expectations in terms of picture quality.