The Korea Times

Watchdog punishes KT for false advertisin­g

- By Kwak Yeon-soo yeons.kwak@koreatimes.co.kr

The Fair Trade Commission (FTC) has issued correction orders to telecom giant KT for false advertisin­g in promoting its GIGA LTE technology, the nation’s antitrust watchdog said Sunday.

The FTC said KT deceived potential customers by sending ads saying it provided the fastest data speed of 1.17 Gbps by combining 3CA LTE-A coverage with localized GIGA WiFi networks.

According to the watchdog, KT posted misleading ads on its website and Olleh Talker blog from June 2015 to November 2018, claiming that GIGA WiFi technology enabled the widest coverage area through KT GIGA Infrastruc­ture.

KT has been promoting GIGA LTE as the core technology of 5G services, highlighti­ng its fast speed and wide coverage through “200,000 LTE network coverage stations and its GIGA Infrastruc­ture.”

However, the commission found that the service was available in only 3.5 percent of the country’s base stations.

The FTC explained that KT’s false advertisin­g violated Article 3 of the Act on Fair Labeling and Advertisin­g, which prohibits (1) false or exaggerati­ng labeling or advertisin­g and (2) deceptive labeling or advertisin­g.

“KT’s move is tantamount to false and exaggerate­d advertisin­g as the network service was only available in a few regions in the country,” an FTC official said.

“There are concerns that KT’s advertisin­g could undermine fair trade by misleading customers into believing that KT’s network services are better than those of its competitor­s.”

The commission said it also investigat­ed other telecom giants, but failed to find evidence of false claims.

Following criticism that the FTC’s investigat­ion took place too long after 5G became commercial­ized, the commission said, “Since 5G has become widely popular this year, it was timely to carry out an investigat­ion this year.”

 ?? Korea Times file ?? The headquarte­rs of KT in Seoul
Korea Times file The headquarte­rs of KT in Seoul

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