The Fair Trade Commission and Samsung Electronics differed over a feature that limits gaming performance on Galaxy smartphones. The FTC imposed sanctions, calling it deceptive advertising to omit the performance limits from ads that promoted gaming performance. Samsung rejected the conclusion, saying it was a normal setting to manage heat. With Samsung signalling a lawsuit, a court battle is set over how far performance-focused ads must disclose limitations.

The FTC said on Oct. 27 it decided to issue corrective orders and impose a provisional penalty of 20.1 billion won on Samsung for advertising the Galaxy S21 and S22 series and the Galaxy Tab S8 series without disclosing the individual policies of GOS (Game Optimizing Service).

GOS is a heat-management system applied to game apps. It adjusts performance based on the device's condition, such as temperature. When certain high-spec games run, it caps the application processor's maximum performance at a preset level regardless of the device's condition.

The FTC took issue with the gap between the impression created by the ads and actual operation. Samsung highlighted gaming performance on its website, promotional videos and new-product launch events (Unpacked), using phrases such as "hard carry when playing high-spec games" and "the ultimate mobile gaming experience". For the S21 series, the advertising period ran from Jan. 15, 2021 to March 21, 2022.

According to the FTC, when "Battlegrounds: New State" was launched, the S22 series' maximum CPU clock was limited to 0.94 GHz from 2.99 GHz. Once a cap is set, the device cannot operate above it even when higher performance is needed. The FTC explained that this can cause screen freezing or lag, or reduced graphics quality.

The FTC judged that ads that failed to disclose such limits interfered with consumers' rational purchasing choices. Around 2021, when the ads began, high-spec PC games were moving to mobile platforms and premium smart devices were growing rapidly. The FTC said consumers placed importance on game performance when choosing high-priced devices.

Consumer reviews were also raised saying they would not have bought a new device at that price if they had known in advance about the performance drop. There were 82 games in the S21 series alone in which maximum CPU and GPU clocks were capped. The FTC viewed this as deceptive advertising under Article 3(1)2 of the Act on Fair Labeling and Advertising.

Samsung immediately pushed back. Its representative, Jipyeong LLC, issued a statement the same day disputing the finding, saying the individual settings were a normal adjustment for optimal gaming performance. Heat management and performance sustainability are common challenges for all smart-device makers, it said, and GOS was the result of considering those issues.

It said that for a small number of games confirmed to generate high heat, it set a cap in a range higher than typical AP clocks to prevent clocks from spiking momentarily. It added that this reduced heat so users could enjoy games for longer at stable frame rates, and that the cap values were adjusted frequently in line with game updates and consumer feedback. Jipyeong said, "As a manufacturer, there is absolutely no reason to intentionally lower device performance."

Samsung said the FTC looked only at the limited figures and did not consider actual gaming experience. It said the FTC press release presented only the ratio of the cap value to the maximum clock, but did not state how the settings affected gaming use such as frames per second (FPS).

It claimed similar performance could be maintained for longer at lower temperatures. It also highlighted that the settings subject to the measure are not currently used. Samsung said a software update in March 2022 lifted maximum CPU and GPU clock limits and allowed users to choose a "game performance mode". It added that there have been no rulings at home or abroad recognising sanctions or legal liability since then, according to Samsung.

The FTC said the measure confirmed that if an advertisement touts a specific performance as a selling point, important limitations that affect that performance must be displayed so consumers can clearly know them. The FTC said the fact that performance is capped itself is information consumers need to know.

Samsung said the cap should be judged by the resulting impact on actual frame rates. After receiving and reviewing the written decision, it plans to file a lawsuit to explain that the ads did not violate the Act on Fair Labeling and Advertising.