With pre-orders for Samsung Electronics’ Galaxy Z8 series approaching, regulators have stepped in to urge caution as excessive subsidy and gift promises by some mobile phone retailers raise concerns over consumer harm. On the 27th, the Broadcasting, Media and Communications Commission (chaired by Kim Jong-cheol) stressed that users should carefully check the actual terms of their contracts rather than the wording of advertisements.
 [코리안투데이] 갤럭시Z8 지원금 약속 과장광고 주의하세요 © 장형임 기자 |
Samsung Electronics’ Galaxy Z8 series is set to launch on August 7, with pre-orders running from the 28th through August 3 beforehand. The Broadcasting, Media and Communications Commission (chaired by Kim Jong-cheol) warned on the 27th that exaggerated advertising of excessive subsidies and gifts by some agencies and dealers is on the rise during this period, and it called for special caution from users.
Recently, some retailers have frequently been inducing reservations by promising high subsidies or advertising various gifts through pre-order notifications and other channels at the pre-contract stage. The problem is that such promises may not be honored at the actual activation stage. When a user visits a retailer or completes an online procedure to activate a device, harm can occur through unkept promises, such as the previously offered subsidy not being paid or the gift not being provided.
 [코리안투데이] 갤럭시Z8 지원금 약속 과장광고 주의하세요 © 장형임 기자 |
Accordingly, the Commission provided a checklist of items that must be verified when placing a pre-order. First, clearly identifying the seller is key. The Korea Association for ICT Promotion (KAIT) has been operating a distribution-worker registration system since May this year to help identify the selling party, and it advised that when users visit a retailer, they should examine the prior-consent form and the distribution worker’s ID card. Confirming the retailer that ran the advertisement and the selling party makes it possible to determine responsibility should a problem arise.
 [코리안투데이] 갤럭시Z8 지원금 약속 과장광고 주의하세요 © 장형임 기자 |
Checking the contract’s contents is also essential. If the subsidy payment and gift provision promised by a retailer are not stated in the contract, users may not actually receive them. Since the contract is an important piece of evidence protecting the user’s rights, it must be obtained and kept. Starting in September, the three mobile carriers are developing systems so that activation-retailer information will be recorded on mobile service contracts and provided to users, and SK Telecom is already implementing this.
 [코리안투데이] 갤럭시Z8 지원금 약속 과장광고 주의하세요 © 장형임 기자 |
Relief channels are also in place in the event of harm. The Commission explained that users who suffer harm from incomplete sales during the pre-order period and the activation process — such as unpaid subsidies or a failure to provide a contract — can file a report through the ‘User Participation Reporting System’ website (www.uservoice.or.kr) operated by the Korea Communications Users’ Protection Association (KCUP).
Commission Chairman Kim Jong-cheol stressed, ‘Rather than hastily signing a contract based solely on the subsidy information a retailer presents during the pre-order period, users should carefully check the conditions specified in the actual contract,’ adding, ‘When harm from exaggerated or false advertising is suspected, please report it immediately through the User Participation Reporting System.’
 [코리안투데이] 갤럭시Z8 지원금 약속 과장광고 주의하세요 © 장형임 기자 |
The ‘subsidy bonanza’ advertising that recurs with every new product launch may look like a benefit to consumers, but if the promise is not written into the contract, it is difficult to receive legal protection. The authorities advise that checking the written contract terms is the surest way to prevent harm, rather than relying on verbal promises made at the pre-order stage.
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