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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] KT has been sanctioned by South Korea’s antitrust regulator for selling and promoting Galaxy smartphone pre-orders without disclosing that quantities were limited.
On the 25th, the Fair Trade Commission (FTC) announced that it imposed a corrective order and an administrative fine of KRW 5 million on KT for violating the Act on Consumer Protection in Electronic Commerce (E-Commerce Act).
KT accepted pre-orders for Samsung Electronics’ Galaxy S25 series from January 24 to February 3 last year through an event page on its online mall. Despite the fact that available quantities were limited, the company informed consumers that “various first-come, first-served benefits will be available unless a separate closing notice is displayed,” implying that all customers who placed reservations would be able to purchase the product.
The FTC found that KT later canceled 7,127 pre-orders. At the time, only 400 units had been allocated to applications submitted through Genie TV and Alight Studio, platforms where KT posted its promotional banners. By presenting the offer as if all customers could complete purchases upon reservation, KT was deemed to have misled consumers through false or exaggerated representations, constituting a violation of the E-Commerce Act.
An FTC official said, “This measure is intended to curb telecommunications companies from luring consumers through false or deceptive practices, encourage compliance with the E-Commerce Act in the relevant market, and help prevent consumer harm.” The official added that the commission “will continue to take strict action against violations of the E-Commerce Act.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
