Samsung Electronics faces a tentative fine of 20 billion won ($15.1 million) in South Korea over misleading gaming advertisements for its Galaxy S21 and S22 smartphones and Galaxy Tab S8 tablets.
The country’s Fair Trade Commission (FTC) announced the decision on Tuesday, alleging that Samsung promoted advanced gaming capabilities without disclosing performance restrictions imposed by its Game Optimising Service (GOS), Yonhap News Agency reported.
The proposed penalty concerns the Galaxy S21 and S22 smartphone series, released in 2021 and 2022, respectively, and the Galaxy Tab S8 series, launched in 2022.
Samsung’s GOS imposed performance limits during gaming
According to the FTC, GOS applied preset performance limits when certain demanding gaming applications were launched. The restrictions capped maximum central processing unit (CPU) and graphics processing unit (GPU) performance, regardless of device temperature or other operating conditions.
The watchdog said these limitations could cause freezes, lag and reduced graphics quality during gameplay.
However, Samsung’s advertisements highlighted gaming performance and features without adequately disclosing these restrictions, the FTC alleged.
FTC flags claims about Galaxy gaming capabilities
Between 2021 and 2022, Samsung used promotional phrases highlighting the processing power and gaming experience of its premium devices.
The FTC cited advertisements describing a Galaxy device as having the “fastest 5-nanometer AP in a Galaxy device yet to hard-carry your gaming”. Another claim promoted an “ultimate mobile gaming experience” through a 120Hz display, rapid screen transitions and responsive touch controls.
The regulator said gaming performance had become an important consideration for consumers as high-end PC games expanded to mobile devices and demand for premium smartphones and tablets increased.
According to the FTC, the omission of performance restrictions could prevent consumers from making informed purchasing decisions. It said the marketing practices constituted deceptive labelling or advertising under South Korea’s Act on Fair Labeling and Advertising.
Samsung introduced software updates in March 2022
The FTC said the case highlights the need for companies to clearly disclose factors that affect device performance when advertising specific capabilities.
Samsung released software updates in March 2022 that allowed users to lift the performance limits, according to the report.
The proposed fine concerns the company’s advertising practices for the specified devices. The FTC’s announcement describes the penalty as tentative, rather than a finalised fine.
