South Korea’s FTC Proposes $15.1 Million Fine on Samsung Over Galaxy Gaming Advertisements

The Fair Trade Commission (FTC) said the case concerns the Galaxy S21 and S22 smartphone series, launched in 2021 and 2022, respectively, as well as the Galaxy Tab S8 tablet series, introduced in 2022.

According to the watchdog, Samsung promoted the devices’ advanced gaming capabilities without adequately informing consumers that its Game Optimising Service (GOS) imposed preset performance limits when certain demanding games were launched.

Performance restrictions allegedly omitted from advertisements

GOS is a system designed to manage heat and performance while running games. However, under its game-specific settings, the service capped the maximum performance of the central processing unit (CPU) and graphics processing unit (GPU), regardless of the device’s temperature or other operating conditions, the FTC said.

The restrictions could result in gameplay issues such as freezing, lag and reduced graphics quality, according to the regulator.

Between 2021 and 2022, Samsung used promotional claims highlighting the gaming performance of its premium devices. These included phrases such as “the fastest 5-nanometer AP in a Galaxy device yet to hard-carry your gaming” and promises of “the ultimate mobile gaming experience” through a 120Hz display designed to deliver rapid screen transitions and responsive touch controls.

The FTC alleged that Samsung emphasised the devices’ gaming experience without adequately disclosing the performance limits imposed by GOS.

FTC says advertisements could affect consumer decisions

The watchdog said gaming performance had become an important selling point for premium smartphones and tablets as high-end PC games increasingly made their way to mobile devices.

Manufacturers were highlighting gaming capabilities through faster screen transitions, detailed graphics and other performance features, making these specifications an important consideration for consumers purchasing high-end devices, the commission said.

The FTC concluded that Samsung’s failure to disclose the restrictions could hinder consumers’ ability to make informed purchasing decisions. It said the conduct constituted deceptive labelling or advertising under South Korea’s Act on Fair Labeling and Advertising.

The commission said the decision underscored the need for companies to clearly communicate important performance limitations when promoting specific features of their products.

Samsung introduced software updates in 2022

Samsung released software updates in March 2022 that allowed users to lift the performance limits imposed by GOS, according to the report.

The FTC’s proposed penalty relates to the company’s earlier marketing practices concerning the specified devices. The decision highlights the regulatory scrutiny technology companies can face when advertising performance capabilities without sufficiently explaining software-based restrictions that may affect the user experience.