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LG Dacom must modify its mobile phone ads

Mar 24,2007
The Fair Trade Commission announced yesterday that it has ordered LG Dacom Corp. to modify its advertisements, saying they contain misleading information on mobile phone charges.
The ads in question ran in magazines between July and August of last year. In the ads, LG Dacom claimed its collect call charges for global roaming service are cheaper than its competition. But the antitrust agency pointed out that LG Dacom did not include local charges that are imposed in foreign nations.
In the ads, LG Dacom claimed its roaming collect call charges are 900 won ($0.96) per minute for calls made from the United States, China and Japan. By comparison, LG Dacom said SK Telecom charges 1,271 won per minute for calls made from the United States and 1,933 won for calls in Japan. If local charges are included, however, LG Dacom’s collect calls for roaming service in the United States would cost 1,328 won per minute, and those in Japan would jump to 1,563 won per minute.
LG Dacom did mention, in fine print, that some local phone charges could arise, depending on the nations where collect calls are made.
The commission said LG Dacom’s comparison with its competition and the content of its ads was inappropriate and misleading. The company is required to run an official notice in major daily newspapers, informing the public that it has received the disciplinary measure from the commission.

By Yoo Jee-ho Staff Writer [jeeho@joongang.co.kr]



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