Samsung Faces $15 Million Fine Over Misleading Galaxy Ads That Concealed CPU and GPU Performance Limits

South Korea's Fair Trade Commission announced on Tuesday that Samsung faces a fine of approximately 20.1 billion Won ($15 million / £11.27 million) for Galaxy gaming adverts that concealed preset CPU and GPU performance limits.

The decision follows advertising for the Galaxy S21 and S22 series smartphones and Galaxy Tab S8 series tablets between 15 January 2021 and 21 March 2022. Samsung marketed them as delivering peak performance during demanding games, while some buyers subsequently reported freezes, lag and reduced graphics quality.

The watchdog decided to impose a corrective order alongside the 20.1 billion Won fine for breaches of the Act on Fair Labeling and Advertising. Samsung disputed the decision and indicated that it would pursue its position through legal proceedings.

Samsung's Gaming Promises Under Scrutiny

According to the commission, Samsung promoted its fastest 5nm application processor and highlighted fast touch responses and smooth screen transitions during gaming. The regulator determined that these claims influenced consumers' purchasing decisions.

Its findings focused on the gap between those promises and restrictions built into the devices' Game Optimizing Service, known as GOS. The software operated as a thermal management system for games, but its limits were not dependent on a device becoming hot.

For buyers assessing devices promoted for advanced gaming, the undisclosed settings were relevant to the performance they could expect. The commission identified gaming performance as an important consideration when consumers purchase expensive smart devices, and an aspect that manufacturers frequently emphasise in advertising.

How Samsung's Performance Limits Worked

GOS restricted maximum operating speeds, also described as clock speeds, as well as refresh rates and other parameters to preset values, according to the regulator. These restrictions applied to the CPU and GPU when certain demanding games launched, regardless of temperature or other conditions.

In some cases, the upper limit on CPU and GPU operating speeds was set as low as approximately 30% of maximum performance, the commission reported. The finding did not establish that every game or device operated at that level.

The timing of the restrictions was central to the watchdog's assessment. Consumers were being offered peak gaming performance without being informed that launching the relevant games would immediately activate limits.

The commission judged that Samsung's failure to disclose immediate performance restrictions during demanding games amounted to deceptive advertising that hindered consumers' ability to make informed purchasing decisions.

It stressed that companies promoting a particular performance feature must clearly disclose important limitations. Its position was that consumers need that information to understand the feature being advertised before deciding whether to purchase.

Samsung Disputes the Decision

Samsung defended the purpose of its software, stating, 'GOS was a feature designed to enhance the perceived performance of games and optimize them for stable long-term play.'

The company also pointed to the status of earlier litigation and complaints. Its statement did not specify the outcomes of those lawsuits or explain which legal procedures it intended to pursue in response to the commission's decision.

Samsung stated, 'This decision is difficult to understand given that all domestic and international lawsuits have been concluded and the reports filed with the commission by lawsuit participants have been withdrawn. We will actively present our position through legal procedures in the future.'