End to False Advertising and Defamation Tensions
[Asia Economy Reporter Dongwoo Lee] Samsung Electronics and LG Electronics, which had reported each other to the Fair Trade Commission over QLED TV and OLED TV advertisements, have both withdrawn their reports.
The Fair Trade Commission announced on the 5th that it has terminated the related review process following the withdrawal of the reports by both companies.
Last September, LG Electronics reported Samsung Electronics to the Fair Trade Commission for violating the Act on Labeling and Advertising, claiming that "Samsung Electronics' QLED TV is an LCD TV using LED backlight, but it falsely and exaggeratedly advertises as if it applies self-luminous technology."
In response, Samsung Electronics countered by reporting LG Electronics to the Fair Trade Commission for violating the Act on Labeling and Advertising, stating that "LG Electronics disparaged QLED TVs without objective grounds in its OLED TV advertisements and even used scenes that consumers could perceive as English profanity against Samsung TVs."
Last week, both companies expressed their intention to withdraw their mutual reports, and the withdrawal was officially received by the Fair Trade Commission on the 4th. The Fair Trade Commission decided to end the review process, considering that the withdrawal of reports by both companies has also alleviated concerns about consumer misunderstanding.
Regarding Samsung Electronics, after overseas advertising review organizations ruled that there was no issue with the use of the QLED name, the Fair Trade Commission took into account that the term QLED TV is used in a broad sense to include LCD TVs based on quantum dot technology and that Samsung emphasizes in advertisements that QLED TVs have backlights.
LG Electronics later stated in a press release, "Samsung Electronics itself clearly informs that QLED TVs are not products applying self-luminous technology," and added, "Considering that the situation that could cause consumer misunderstanding has been resolved after the report and the difficult domestic and international economic environment, we decided to withdraw the report."
Samsung Electronics also emphasized, "We withdrew the report as LG Electronics has stopped disparaging advertisements," and "This once again proves that there is absolutely no problem with the use of the QLED TV name."
The Fair Trade Commission said, "Both companies have expressed their intention to provide accurate information to consumers through labeling and advertising, refrain from negative marketing, and focus on quality competition."
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