Samsung has been a target of several lawsuits during the past years. A false advertising campaign may again scratch off some of Samsung's reputation.The Fair Trade Commission (FTC) is reportedly investigating an alleged Samsung false advertising. If found guilty, Samsung will be asked to pay a fine of $835,000.
According to allegations in Taiwan, Samsung hired students to post on the web damaging articles against HTC. These are articles also promotes the use Samsung over other mobile phones in the market.
In a statement, Samsung admitted that their employees committed the mistake because of "insufficient understanding" of the company's marketing principles.
Below is a press release by Samsung over the false advertising issue.
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.
Is Samsung really liable with the false advertising against HTC?
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