Users Can Now Directly Report False or Exaggerated Device Subsidy Ads

The Broadcast Media and Communications Commission (BMC) announced on the 26th that it will begin a pilot operation of a "User Participation Reporting System" from March 3, in order to reduce user harm occurring in the mobile telecommunications distribution process, such as false or exaggerated advertising of device subsidies and failure to record required information in contracts.

Broadcast Media and Communications Commission logo. Provided by the Broadcast Media and Communications Commission

This system will be implemented to coincide with the launch of Samsung Electronics' new device, the Galaxy S26. Users will be able to directly report violations committed by mobile network operators and retail outlets. Unlike the previous reward-based reporting system, which focused on excessive payment of subsidies, this new reporting system will center on whether businesses comply with obligations related to truthful and non-exaggerated advertising and proper completion of contracts.

Reportable violations include: cases where the information provided on subsidies differs from the subsidies actually paid; failure to provide a copy of the contract; failure to specify device subsidies and payment conditions in the contract; inducing customers to subscribe to high-priced plans and additional services; and discrepancies between the information of the retail outlet visited and the outlet where the service is actually activated.

The BMC explained that there are limits to managing the vast distribution market through on-site inspections alone, and that it has therefore decided to supplement supervision through user participation. Reported cases will be linked to the mobile carriers' prior approval system, as well as to the BMC's administrative guidance and fact-finding investigations.

Users will be able to file reports on the website of the Korea Association for ICT Consumer Protection from March 3, during the Galaxy S26 pre-order period. If a legal violation is confirmed, the informant will receive compensation of up to 200,000 won per year.

BMC Chairman Kim Jongcheol stated, "Voluntary participation by users is essential to swiftly detect illegal or irregular practices that occur covertly in the device market," adding, "This system will serve as an important opportunity to establish a sound distribution environment."