Samsung Embroiled in Fair-Trade Investigation in Taiwan over Fake Web Reviews
April 19, 2013 9:17 AM
Samsung allegedly hired students to criticize HTC devices
Samsung has found itself in hot water in Taiwan with fair trade officials after allegations surfaced that the company hired students to post false, critical reviews of HTC products online.
Samsung, for its part, has stated that the "unfortunate incident" goes against the "fundamental principles" of the company.
If Samsung is found guilty of false advertising, it and its local advertising agency could face fines of up to 25 million Taiwanese dollars. A Fair Trade Commission spokesperson said that the investigation began after a series of complaints were received against Samsung.
More fuel was added to the fire when a Taiwanese website posted documents that allegedly show Samsung had been recruiting students to anonymously offer praise for Samsung devices on the internet and simultaneously criticize HTC offerings.
Samsung's legal troubles with false advertising aren’t the only false advertising allegations the company is fighting. LG sued Samsung in South Korea over claims of false advertising. In that case, Samsung
LG for $45 million.
Samsung was also fined in Taiwan earlier this year over misleading advertisements having to do with specifications for the camera on the Galaxy Y Duo.
"Well, we didn't have anyone in line that got shot waiting for our system." -- Nintendo of America Vice President Perrin Kaplan
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