The notion that LED light does not show colors faithfully can be due to a bad first impression. Because LED is not a full-spectrum light source, early versions could produce a “muddy” color effect. The most common complaints were that blues looked green or reds ended up looking brown. That would be caused by a diode producing light that was missing sections of the light spectrum.
To combat this, LED manufacturers began to develop products according to their Color Rendering Index, which measures how accurately a light source renders the colors it falls on (a higher number means truer colors). Most LEDs for home are now at least in the 80 CRI range, but we are seeing more 90+ CRI options hitting the market. This is a good number to keep an eye on to ensure that the light you get will be pleasant and meet the needs of your room.