Samsung probed for allegedly bashing rival HTC online
The tech giant allegedly hired students to tout Samsung smartphones
while posting negative comments about HTC devices -- a Taiwanese
commission says this is equal to false advertising.
The Taiwanese Fair Trade Commission has reportedly launched an investigation into Samsung on allegations that the phone-maker was paying students to post negative online comments about HTC devices, according to AFP. HTC is one of Samsung's most staunch rivals.
Supposedly, the South Korean tech giant hired students to both write the inflammatory comments about HTC products and also recommend Samsung cell phones. The commission says that this type of behavior is akin to false advertising. According to AFP, the Fair Trade Commission spokesman Sun Lih-chyun said, "The case was set up last week after we received complaints."
For its part, Samsung has said that what happened was "unfortunate" and it occurred because there was "insufficient understanding" of the "fundamental principles" of the company's online procedures. The company also said that it has stopped all marketing that "involves the posting of anonymous comments."
According to AFP, the alleged campaign happened via a local advertising agency hired by Samsung. If Samsung and the agency are found to have practiced false advertising, they face a fine of up to $835,000.
This won't be the first time Samsung would be fined by Taiwan's Fair Trade Commission. According to AFP, the company was fined around $10,000 earlier this year for allegedly engaging in misleading advertising about its Galaxy Y Duos. Samsung was also fined $16.2 million in January by China's National Development and Reform Commission over charges that it colluded with LG and four Taiwanese firms to fix the prices of LCD panels.
The Taiwanese Fair Trade Commission has reportedly launched an investigation into Samsung on allegations that the phone-maker was paying students to post negative online comments about HTC devices, according to AFP. HTC is one of Samsung's most staunch rivals.
Supposedly, the South Korean tech giant hired students to both write the inflammatory comments about HTC products and also recommend Samsung cell phones. The commission says that this type of behavior is akin to false advertising. According to AFP, the Fair Trade Commission spokesman Sun Lih-chyun said, "The case was set up last week after we received complaints."
For its part, Samsung has said that what happened was "unfortunate" and it occurred because there was "insufficient understanding" of the "fundamental principles" of the company's online procedures. The company also said that it has stopped all marketing that "involves the posting of anonymous comments."
According to AFP, the alleged campaign happened via a local advertising agency hired by Samsung. If Samsung and the agency are found to have practiced false advertising, they face a fine of up to $835,000.
This won't be the first time Samsung would be fined by Taiwan's Fair Trade Commission. According to AFP, the company was fined around $10,000 earlier this year for allegedly engaging in misleading advertising about its Galaxy Y Duos. Samsung was also fined $16.2 million in January by China's National Development and Reform Commission over charges that it colluded with LG and four Taiwanese firms to fix the prices of LCD panels.
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