South Korea's FTC proposes 20 billion-won fine for Samsung over deceptive gaming ads
The Fair Trade Commission announced a tentative 20 billion-won penalty for Samsung Electronics after it advertised Galaxy phones and tablets as high-performance gaming devices while a built-in service limited CPU and GPU output.
The South Korean Fair Trade Commission issued a tentative ruling that Samsung Electronics should be fined 20 billion won for misleading advertising of its Galaxy S21, S22 smartphones and Galaxy Tab S8 tablet. The agency said the ads emphasized advanced gaming capabilities, yet the devices' Game Optimizing Service imposed preset CPU and GPU limits when demanding games were launched, resulting in reduced graphics quality, lag and freezes.
The FTC argued Samsung failed to inform consumers of these restrictions, violating the Act on Fair Labeling and Advertising. It highlighted that gaming performance is a major factor for buyers of premium devices, making the omission significant for consumer choice. Samsung responded that a software update in March 2022 allows users to lift the performance caps. The decision reinforces the need for transparent tech advertising in a competitive market.
Why it matters
The fine underscores the importance of truthful advertising for consumer trust in high-performance tech products.
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