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October 27, 2013

Samsung Group Fined $340,000 for Damaging HTC Products Through Bogus Comments

Samsung ordered to pay a fine of $340,000 for bringing bogus opinions on various online forums to penalize HTC products.

Samsung has found guilty to pay a fine of $340,000 in violation of fair trade rules to promote its own products while making a negative impact of HTC smartphones.

After being accused of paying to have a negative review of HTC products in April, Taiwan’s FTC (Fair Trade Commission) was investigating Samsung’s advertising agency in Taiwan. In FTC report, Samsung’s advertising agency followed illegal practices that spice up their smartphone market, in which they made fake online comments to penalize HTC products.

In a promotional campaign, Samsung didn’t promote its own smartphones so much instead – with a specific reason – demystified the goodness of rival’s products. The Korean group posted negative comments and reviews on some Taiwanese forums through its employees or external marketing agencies.

The transgression is added under the name of “astroturfing”, i.e. the capillary work of creating online content that infiltrates opinions among the masses to damage or benefit of a specific product. In this case, Samsung wanted to slow down the HTC’s root opportunities, ensuring itself a greater control of the market.

Well! The penalty doesn’t seem to adequately compensate the damage inflicted. HTC has been through a difficult year — even with good products like HTC One while Samsung is celebrating its 40 million Galaxy S4 sold achievement and paying an allowance of just $340,000 in the coffers of the FTC. However, the case is closed, but the challenge with HTC?

 

Text by Inferse
 

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