LG Electronics and Samsung Electronics Withdraw Counter-Complaints to the Fair Trade Commission Regarding QLED TV

Fair Trade Commission decides to end review process... Withdrawal of report and resolution of consumer misunderstanding concerns

[Sejong=Asia Economy Reporter Joo Sang-don] LG Electronics and Samsung Electronics, who filed counter-complaints with the Fair Trade Commission (FTC) over violations of the Act on Fair Labeling and Advertising related to Quantum Dot Light Emitting Diode (QLED) TVs, have both withdrawn their complaints.

On the 5th, the FTC announced that it decided to terminate the review process considering that LG Electronics and Samsung Electronics withdrew their mutual complaints regarding violations of the 'Act on Fair Labeling and Advertising' and resolved concerns about consumer misunderstanding.

An FTC official explained, "Both companies expressed their intention to withdraw the complaints last week," adding, "The actual withdrawal documents were received on the 4th."

LG Electronics was the first to file a complaint with the FTC. In September last year, LG Electronics reported to the FTC that Samsung Electronics’ TV with a backlight being labeled and advertised as a 'QLED TV' constituted false and exaggerated advertising. In response, the following month, Samsung Electronics filed a counter-complaint, claiming that LG Electronics disparaged Samsung QLED TVs without objective grounds, which amounted to unfair comparative and disparaging advertising. Since then, the FTC has been conducting investigations and hearing opinions from both parties based on the complaints.

According to the 'Rules on the Operation of FTC Meetings and Case Procedures,' the review process can be terminated if the complainant withdraws the complaint. Based on this, the FTC judged that the issue of consumer misunderstanding had been resolved and ended the review process. It was taken into account that the term 'QLED TV' has been spreading as a broad concept, Samsung Electronics emphasized on its website and YouTube advertisements that its QLED TVs have backlights, and LG Electronics also stopped the advertisements that caused controversy due to disparagement.

Upon deciding to withdraw the complaints, both companies informed the FTC of their intention to provide accurate information to consumers through labeling and advertising in the future, refrain from negative marketing, and focus on quality competition.