Samsung fined $340,000 over faking negative web comments about competition

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Sep 23, 2010
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Samsung fined $340,000 over faking negative web comments about competition


Throughout last year, Apple-friendly web sites were infested with an avalanche of ugly comments by anonymous posters concerning the iPhone, iPad and the Apple brand in general. While website owners were reluctant to publicly point the finger of blame at the South Korean conglomerate, many had suspected it was no coincidence given Samsung was riding high on its anti-Apple ad campaign.

Conveniently, hate-spewing quickly died down after Taiwan’s Fair Trade Commission (FTC) in April launched an investigation into Samsung’s tactics following the company’s admission of guilt about, in its own words, the “unfortunate incident” which occurred “due to insufficient understanding”.

Though Samsung said it had“ceased all marketing activities that involve the posting of anonymous comments,” the FTC – after finding Samsung indeed hired a “large number of hired writers and designated employees” to trash-talk competition in web comments – has now decided to slap the Galaxy maker with a $340,000 fine…

Though the FTC in a notice on its website does not mention Samsung’s competition by name, the Associated Press reported that Samsung was found guilt of organizing “an Internet campaign in violation of fair trade rules to praise Samsung smartphones while slamming those of HTC”.

The list of Samsung’s astroturfing activities, according to the Taiwanese trade body, includes the “disinfection of negative news about Samsung products,” “palindromic Samsung product marketing,” and more, reports The Verge.

The FTC also fined Samsung earlier this year over misleading ads about the Galaxy Y Duos GT-S6102 camera features. Today’s ruling is of little consolation to HTC.

The Taiwanese maker has just posted a loss in the September quarter after its global handset share plummeted from a high of 10.3 percent in the third quarter of 2011 to an unbelievably paltry 2.6 percent in the third quarter of 2013.

I should also note that there’s no concrete evidence in the FTC’s ruling that Samsung in fact paid students to lambast the iPhone in web comments.

That being said, it certainly stands to reason that the South Korean firm has probably engaged in such activity given the fierce rivalry with Apple, its legal troubles over copying iPhone technology and especially the fact that Samsung’s executives were OK with mounting such a campaign against HTC.

Last but not least, as Computerworlds’ Jonny Evans wrote back in April, “Samsung’s admission of complicity within this case sure makes it extraordinarily easy to think it possible it has been paying people to engage in online attacks against all its competitors”.

I’m sure it’s totally coincidental that we’ve been seeing a sharp decline in the frequency of hating on Apple in our own comments.
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greenleaves said:
What fucks my mind here is that a small company doing that will pay more money than a billion dollar company doing the same thing.
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You mean there is precedent where small companies have been sued for more?


I thought we were just breaking google rules here and not actually breaking the law.... does anyone have a definitive resource for what's legal and what's not in the USA?
 
greenleaves said:
What fucks my mind here is that a small company doing that will pay more money than a billion dollar company doing the same thing.
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What bothers me is that political parties and governments are probably the worst offenders right now.

They're supposed to be following the consent of the "governed," yet they spend millions manufacturing opinion through media. You can bet they have an army of internet slaves, trolls, disinfo, etc. They'll never be fined for such, because it's somehow ok for them to lie about public or personal opinion.

On top of that... the fines go to the FTC? Why wouldn't they go to the damaged party?
 
are teh fines higher for fake negative or fake positive reviews?

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cyphermil said:
You mean there is precedent where small companies have been sued for more?


I thought we were just breaking google rules here and not actually breaking the law.... does anyone have a definitive resource for what's legal and what's not in the USA?
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I didn't express myself correctly. Samsung got fined a 0.00x% of profits. Other companies are fined xx-xxx% of profits. They didn't get fined as much monetarily:

Fake online reviews crackdown in New York sees 19 companies fined | World news | theguardian.com
 
cyphermil said:
You mean there is precedent where small companies have been sued for more?


I thought we were just breaking google rules here and not actually breaking the law.... does anyone have a definitive resource for what's legal and what's not in the USA?
Click to expand...


Things that are legal in the United States: None of the things
Things that are illegal in the United States: All of the things.

I think that about sums it up.
 
Im sure they will have a meeting stating they need to be more careful in the future lulz.
 
Samsung's marketing agency must have outsourced it through Fiverr! LOL.
The same thing is getting caught up with Blackberry's BBM app for Android.
 
unlike u guys making claims i had HTC, Samsun and i have new LG.
if u go for mid range price, LG burns HTC and Samsung models. dont read comments [esop that u see they are fake] but test urself.
of course the top HTC phone beats LG/S but most peopel dont buy the top but usual ones in mid range, and LG beats up opponents there. speed on LG is decent compared to buggy HTCs.
 
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