[DigitalToday, Jin-ho Lee] South Korea's Broadcast Media Telecommunications Commission urged consumers to watch out for exaggerated advertising by mobile phone retailers ahead of preorders for Samsung Electronics' Galaxy Z8 series.

The commission said on July 27 that as preorders for the Galaxy Z8 series run from July 28 to Aug. 3, cases are increasing in which some mobile phone agencies and retailers induce reservations by offering high subsidies and giveaways.

Some retailers notify customers of subsidies and giveaways through preorder alerts, but may not provide the promised benefits during the actual activation process, the commission said. It stressed that consumers should check the retailer and seller running the advertisement before placing a preorder and see whether the subsidy and giveaway items are specified in the contract.

The Korea Association for ICT Promotion (KAIT) has operated a registration system for distribution workers since May. Users need to check a prior consent form and a distribution worker ID when visiting a retail outlet to clearly confirm who is responsible for the sale. If subsidy and giveaway details are not written in the contract, it may be difficult to receive the promised benefits. In particular, contracts must be kept as they are used as supporting material in the event of disputes.

If damage occurs during the preorder and activation process, such as unpaid subsidies or failure to provide a contract, users can report it through the Korea Consumer Union of Platform (KCUP) user-participation reporting system.

The commission is also developing systems with the three mobile carriers so that information on the activation retailer is listed on mobile service contracts starting in September. SK Telecom has already implemented the system.

Kim Jong-cheol (김종철), the commission's chair, said, "Rather than hastily signing a contract based only on subsidy information presented by a retail outlet, you should carefully check the conditions stated in the actual contract." He added, "If you suspect damage caused by exaggerated or false advertising, please report it through the user-participation reporting system."