Samsung Electronics Faces 20.1 Billion Won Fine for Misleading Gaming Ads
[Economy] : Samsung Electronics is facing a fine of 20-point-one billion won, or approximately 15-point-16 million U.S. dollars, for misleading advertisements concealing presets limiting the performance of its Galaxy smartphones during gaming, South Korea’s antitrust watchdog announced Tuesday. The Fair Trade ... [more...]
The South Korean Fair Trade Commission (FTC) has imposed a tentative fine of 20 billion won (approximately US$15.1 million) on Samsung Electronics for misleading advertisements. The fines target Samsung's Galaxy S21, S22 smartphones, and Galaxy Tab S8 tablet series, all released between 2021 and 2022. The FTC alleges that Samsung failed to disclose that its Game Optimizing Service (GOS), a heat management system for gaming apps, capped maximum CPU and GPU performance regardless of the device's temperature or other conditions.
This limitation could cause freezes, lag, and reduced graphics quality during gameplay. Samsung's advertisements highlighted the devices' advanced gaming capabilities, leading consumers to believe the smartphones could deliver optimal gaming performance. The FTC contends that such misleading marketing hindered consumers' ability to make informed purchasing decisions, which is a violation of the Act on Fair Labeling and Advertising.
The FTC has previously warned companies to clearly inform consumers about factors affecting product performance when emphasizing certain features in advertisements.
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