LG Uplus loses lawsuit over 5G ad fine, court finds 'exaggerated claims'

A South Korean court has rejected LG Uplus's appeal against a 2.8 billion won fine imposed by the Fair Trade Commission. The fine stemmed from advertisements that exaggerated the speed of its 5G mobile service, claiming it was 20 times faster than 4G LTE.

“

It is reasonable to view the advertisements as false and exaggerated, or deceptive by concealing or downplaying facts.

The Seoul High Court ruled that the advertisements violated the Fair Trade Act, finding that LG Uplus presented speeds that were either untrue or significantly inflated. The court also criticized comparative advertisements that suggested LG Uplus's 5G service was faster than competitors, deeming the comparison methods and content inappropriate.

“

Data speed is a crucial factor for consumers when choosing a mobile service, and misleading claims can obstruct rational decision-making, thereby harming fair trade.

"It is reasonable to view the advertisements as false and exaggerated, or deceptive by concealing or downplaying facts," the court stated. It emphasized that data speed is a crucial factor for consumers when choosing a mobile service, and misleading claims can obstruct rational decision-making, thereby harming fair trade.

“

It is reasonable to view the advertisements as false and exaggerated, or deceptive by concealing or downplaying facts.

In May 2023, the Fair Trade Commission fined three mobile carriers a total of 33.6 billion won for similar advertising practices. LG Uplus, fined 2.85 billion won, filed its lawsuit in August of the same year. The carriers had advertised speeds of up to 20Gbps, a theoretical maximum, starting in April 2019, often using exclusive phrases to claim superior speed and quality.

“

It is reasonable to view the advertisements as false and exaggerated, or deceptive by concealing or downplaying facts.