According to reports, the Fair Trade Commission in Taiwan has initiated an enquiry into Samsung after it allegedly paid off students in order that they would post negative comments about HTC devices on online forums in accordance with reports from AFP. These allegations come to light at a time when Samsung’s staunch rival HTC has released the First, the Facebook-based Phone which may threaten to steal the former’s market share.
The South Korean firm supposedly hired students to write damaging comments on the quality of HTC smartphones as well as to recommend consumers to purchase Samsung’s smartphones instead. According to the commission, this sort of behaviour came under the purview of false advertising and would be reasonably dealt with after complaints were received last week regarding the same. Samsung tried to blow off the incident by terming it as ‘unfortunate’ and it blamed the lack of understanding of the main principles of the company’s online processes. The manufacturer promised that all marketing activity that involved anonymous comments being posted has been ceased on its part.
On initiating correspondence with Samsung, CNET was told that the company still believes in engaging in and conducting honest and transparent communication because it is ingrained in the company’s online communications credo. Samsung also promised to continue to educate its staff and personnel about this matter in order that to prevent a re-occurrence. Of course, Samsung is not new to such allegations, and has paid hefty fines in the past for such practices.
AFP reports that this strategic marketing campaign was conducted through a local advertising agency hired by the South Korean firm. The firm faces a fine of a little less than $850,000 if found guilty of false advertising. Samsung was also fined $10,000 this year for misleading consumers in their advertisements for the Samsung Galaxy Y Duos and $16.2 million by the National Development and Reform Commission of China over charges of colluding with LG and 4 Taiwan-based firms to set a price level for LCD panels. Despite Samsung being no stranger to being fined by local governing bodies for being anti-competitive in their own way, the company continues to try to strong-arm its competitors to gain an even higher market share in the electronics market.
Samsung In Trouble Over HTC Bashing?
According to reports, the Fair Trade Commission in Taiwan has initiated an enquiry into Samsung after it allegedly paid off students in order that they would post negative comments about HTC devices on online forums in accordance with reports from AFP. These allegations come to light at a time when Samsung’s staunch rival HTC has released the First, the Facebook-based Phone which may threaten to steal the former’s market share.
The South Korean firm supposedly hired students to write damaging comments on the quality of HTC smartphones as well as to recommend consumers to purchase Samsung’s smartphones instead. According to the commission, this sort of behaviour came under the purview of false advertising and would be reasonably dealt with after complaints were received last week regarding the same. Samsung tried to blow off the incident by terming it as ‘unfortunate’ and it blamed the lack of understanding of the main principles of the company’s online processes. The manufacturer promised that all marketing activity that involved anonymous comments being posted has been ceased on its part.
On initiating correspondence with Samsung, CNET was told that the company still believes in engaging in and conducting honest and transparent communication because it is ingrained in the company’s online communications credo. Samsung also promised to continue to educate its staff and personnel about this matter in order that to prevent a re-occurrence. Of course, Samsung is not new to such allegations, and has paid hefty fines in the past for such practices.
AFP reports that this strategic marketing campaign was conducted through a local advertising agency hired by the South Korean firm. The firm faces a fine of a little less than $850,000 if found guilty of false advertising. Samsung was also fined $10,000 this year for misleading consumers in their advertisements for the Samsung Galaxy Y Duos and $16.2 million by the National Development and Reform Commission of China over charges of colluding with LG and 4 Taiwan-based firms to set a price level for LCD panels. Despite Samsung being no stranger to being fined by local governing bodies for being anti-competitive in their own way, the company continues to try to strong-arm its competitors to gain an even higher market share in the electronics market.