Taiwan’s Fair Trade Commission is investigating Samsung over fabricated posts in local online forums that defamed HTC products, which could lead to Samsung receiving penalties for false advertising and a potential fine of around €640,000.
The investigation was started after a Taiwanese blog called “TaiwanSamsungLeaks” was set up, accusing the handset manufacturer of “evil marketing” – i.e. paying Taiwanese students to anonymously post comments on local gadget site forums which criticised rival products, particularly the HTC One X and HTC Sensation XL devices.
The website published a series of documents which catalogued the various disparaging forum posts, that are allegedly from the marketing firm hired by Samsung in Taiwan.
When we tried, it was still possible to download an outlook email xml file showing an email sent from the marketing firm to several individuals in Samsung Taiwan, with an “S3 Viral Plan” powerpoint presentation on how to market the Samsung Galaxy S3, including targeting local bloggers and social media.
Internal viral plan showing the Taiwanese marketing firm’s plans to market the Galaxy S3
“We are disappointed that a competitor would resort to misleading consumers to discredit our innovation. HTC values its product innovation and design, and we will take appropriate actions to protect the interests of the company and our customers,” commented a HTC spokesperson.
Besides posts from users complaining about the HTC One X not working properly, benchmark reviews favourably comparing Samsung’s Galaxy S3 to the HTC One X were posted, stating that the S3 outperformed the HTC One X in terms of graphics and battery life, as well as comments praising Samsung.
Some of the forum posts made about Samsung and HTC
Samsung Electronics has admitted to the “unfortunate incident” which it “regrets” and has promised to “reinforce education and training” for its employees.
“Samsung Electronics Taiwan (SET) has ceased all marketing activities that involve the posting of anonymous comments, and will ensure that all SET online marketing activities will be fully compliant with the company’s Online Communications Credo,” said a Samsung spokesperson.
“Samsung Electronics remains committed to engaging in transparent and honest communications with consumers as outlined in the company’s Online Communications Credo.
“We have encouraged all Samsung Electronics employees worldwide to remain faithful to our Credo. The recent incident was unfortunate, and occurred due to insufficient understanding of these fundamental principles.”
HTC launched it’s First handset, which comes preinstalled with the new Facebook Home user interface, earlier this month.
Meanwhile, Samsung unveiled its latest Galaxy S4 handset in March.