UPDATE 5-U.S. tells consumers to stop using fire-prone Samsung phones

Sat Sep 10, 2016 4:38am EDT
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* Samsung recalling Note 7 in 10 countries due to faulty battery

* Recall could cost firm nearly $5 billion -analysts

* U.S. FAA, some airlines ban use or charging of Note 7 in flight

* Samsung asks U.S., S.Korea customers to stop using Note 7 (Adds S.Korea recommendation against using Note 7 in airplane in paragraph 14)

By Se Young Lee and Jeffrey Dastin

SEOUL/NEW YORK, Sept 10 (Reuters) - A U.S. government safety agency on Friday urged all consumers to stop using Samsung Galaxy Note 7 phones, which are prone to catch fire, and top airlines globally banned their use during flights.

Following reports that the phones' batteries have combusted during charging and normal use, the U.S. Consumer Product Safety Commission said it was working on an official recall of the devices and that users should turn them off in the meantime.

Samsung Electronics Co Ltd said it was working with the agency and asked customers to immediately turn in their Note 7 phones. It voluntarily issued a recall last week for 10 markets, including South Korea and the United States, and it said it was expediting shipments of replacement phones to customers in the United States.

The U.S. government action heralds more fallout for the South Korean manufacturer, which may take a financial hit from the recall and lose customers who are concerned about the quality of its flagship phones.   Continued...