Samsung accused of paying people to criticize rival HTC

Samsung accused of paying people to criticize rival

2013-04-17 06:27:58 GMT2013-04-17 14:27:58(Beijing Time)  SINA.com

Fair-trade officials in Taiwan are looking into reports that Samsung paid people to criticise rival HTC online.

Samsung is alleged to have hired students to post negative comments about phones made by Taiwan’s HTC.

Samsung, based in South Korea, said the “unfortunate incident” had gone against the company’s “fundamental principles”.If found guilty of engaging in “false advertising”, Samsung and its local agent could face fines of up to of 25m Taiwanese dollars (£547,000).

Taiwan’s Fair Trade Commission had begun an investigation after receiving a series of complaints, a spokesman told the AFP news agency.

A local website had published documents appearing to show Samsung had been recruiting students to criticise HTC and praise Samsung anonymously on the web, reported PC Advisor.

Samsung Taiwan said it had not been told about the investigation, however the subsidiary put a statement on its local Facebook page saying it had “ceased all marketing activities that involve the posting of anonymous comments”.

It said all future marketing work would be more in line with its company philosophy of transparency and honesty.

“The recent incident was unfortunate, and occurred due to insufficient understanding of these fundamental principles,” it said, adding that it was planning training for employees to ensure events were not repeated.

In early 2013, Samsung was fined by Taiwanese authorities for an advert that misled consumers about the camera on the Galaxy Y Duo.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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