Samsung Electronics has been fined approximately 20.1 billion won for failing to disclose actual performance restrictions while advertising the gaming capabilities of its Galaxy smart devices.
The Fair Trade Commission (FTC) announced on the 27th that it decided to issue a corrective order and impose a provisional fine of 20.114 billion won on Samsung Electronics for omitting facts regarding performance throttling caused by its Game Optimizing Service (GOS) during advertisements for the Galaxy S21, S22, and Galaxy Tab S8 series.
The advertisements in question ran from January 2021 to March 2022. During this period, Samsung Electronics highlighted gaming performance at new product showcases, on its website, and in promotional videos using phrases such as "the fastest AP in Galaxy history" and "the ultimate mobile gaming experience." In reality, however, specific GOS policies were applied that immediately throttled the maximum operating speeds of the CPU and GPU as soon as certain high-spec games were launched, regardless of the device's temperature or state.
According to the FTC investigation, the degree of performance throttling varied by game and device. Notably, on the Galaxy S22 series, launching 'PUBG: NEW STATE' limited the maximum CPU clock speed from 2.99GHz to 0.94GHz and the GPU from 818MHz to 220MHz. These figures represent just 31.4% and 26.9% of their original maximum performance, respectively. The CPU and GPU maximum clock speed restrictions applied to 82 games on the Galaxy S21 series, 47 games on the S22 series, and 8 games on the Tab S8 series.
While thermal management features typically adjust performance only when a device's temperature rises, the GOS policies in question applied predetermined caps immediately upon launching a game. As a result, even when the device was capable of full performance, it could not meet the game's hardware demands, leading to frame stutters and reduced graphic quality. Indeed, numerous consumer complaints regarding degraded gaming performance were raised at the time.
In March 2022, after the controversy surfaced, Samsung Electronics released a software update that removed the maximum CPU and GPU clock speed limits and introduced a "Game Performance Mode" that allowed for relaxed thermal controls. It also lifted measures that prevented users from bypassing the individual GOS policies.
However, setting aside the post-launch software update, the FTC took issue with the fact that Samsung Electronics failed to provide crucial information that could influence consumer purchasing decisions at the time of sale. The FTC determined that touting gaming performance as a key selling point while concealing restrictions directly affecting that performance constitutes "deceptive advertising" under the Act on Fair Labeling and Advertising.
The FTC explained that this action reinforces the principle that when highlighting a specific feature as a product strength, key restrictions that impact that performance must also be clearly disclosed to consumers. The commission added that it will continue to monitor unfair labeling and advertising practices that hinder consumers from making informed purchasing choices.
