South Korea’s antitrust watchdog has decided to impose a tentative fine of 20 billion won ($15.1 million) on Samsung Electronics over advertisements that allegedly misled consumers about the gaming performance of its Galaxy smartphones and tablets.
The Fair Trade Commission (FTC) said the case involves Samsung’s Galaxy S21 and S22 smartphone series, released in 2021 and 2022, respectively, as well as the Galaxy Tab S8 tablet series launched in 2022, according to Yonhap News Agency.
The regulator said Samsung promoted the devices’ gaming capabilities without clearly disclosing that its Game Optimizing Service (GOS) imposed preset performance limits when certain demanding games were launched. The service was designed to manage heat during gaming, but its policies capped CPU and GPU performance regardless of the device’s temperature or other operating conditions.
According to the FTC, these restrictions could cause games to freeze, lag or display lower-quality graphics, potentially affecting the gaming experience consumers expected from the company’s premium devices.
The watchdog noted that gaming performance had become an important selling point as high-end PC games increasingly made their way to mobile devices and demand for powerful smartphones grew. Manufacturers were highlighting gaming capabilities in their marketing, making them an important consideration for consumers buying premium devices.
Between 2021 and 2022, Samsung used advertising claims such as “the fastest 5-nanometer AP in a Galaxy device yet to hard-carry your gaming” and promoted what it described as “the ultimate mobile gaming experience.” The company also highlighted its 120Hz displays, fast screen transitions and responsive touch controls.
However, the FTC said Samsung failed to adequately disclose the restrictions imposed by GOS while emphasizing the devices’ gaming performance. The regulator determined that the marketing practices hindered consumers’ ability to make informed purchasing decisions and constituted deceptive advertising under South Korea’s Act on Fair Labeling and Advertising.
The FTC said the decision reinforces the need for companies to clearly explain important limitations that affect product performance, particularly when those products are advertised based on specific capabilities.
Samsung released software updates in March 2022 that allowed users to remove the GOS performance restrictions. However, the FTC’s decision focuses on the company’s earlier advertising practices and its failure to adequately inform consumers about the limitations.
If this article helped you, please consider supporting our work. Every small contribution keeps Abijita.com independent and running.
The proposed fine amounts to 20 billion won, or approximately $15.1 million. As the penalty is tentative, the final amount may depend on the regulator’s subsequent proceedings.
