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."
Here is Samsung's official statement on the matter that was sent to CNET by
a company spokesperson:
Samsung Electronics remains committed to engaging in transparent and honest
communications with consumers as outlined in the company's Online Communications
Credo. We have encouraged all Samsung Electronics employees worldwide to remain
faithful to our Credo. The recent incident was unfortunate, and occurred due to
insufficient understanding of these fundamental principles.
Samsung Electronics Taiwan (SET) has ceased all marketing activities that
involve the posting of anonymous comments, and will ensure that all SET online
marketing activities will be fully compliant with the company's Online
Communications Credo.
We regret any inconvenience this incident may have caused. We will continue
to reinforce education and training for our employees to prevent any future
recurrence.
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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