LG Electronics Files Complaint with FTC
A dispute between Samsung Electronics and LG Electronics over the former's QLED TVs is expected to continue into next year.
LG Electronics has filed a complaint with the Fair Trade Commission (FTC) of Korea claiming that Samsung Electronics' QLED TV advertisement is false and exaggerated. But the FTC cannot look into the issue immediately due to a lack of manpower. As a result, the dispute between the two companies is expected to be prolonged.
LG Electronics argues that Samsung Electronics has violated the Advertising Act because it advertises its TVs as “QLED TVs,” which in fact are LCD TVs that use LED back lights.
In principle, the FTC looks into a complaint within three months. The fair trade watchdog is required to wrap up the investigation and review procedure for a case and make a decision within 90 days.
But the problem is that the FCT has no administrative capacity to deal with the complaint filed by LG Electronics within 90 days. “The relevant department in the Seoul office receives 6,000 reports a year,” an FTC official said. “We need to process 400 cases per person a year but it is difficult to process one case per day.”
That is not the end. Each case has to go through the subsequent stages of deliberation, resolution, decision notice and appeal. Even if a decision is made by the FTC, interested parties can still file an appeal, an administrative lawsuit, or a constitutional appeal. All of these processes may take several years. In addition, LG Electronics, following the FTC report, has also highlighted a contrast modulation (CM) issue regarding Samsung Electronics 8K TVs, intensifying the battle between the TV giants.