5G Exaggerated Advertising

A document covering controversies and consumer damage cases caused by telecommunications companies and equipment manufacturers inflating actual performance in advertisements during the 5G commercializ

5G Exaggerated Advertising

Overview

5G exaggerated advertising refers to cases where domestic and international telecommunications companies and equipment manufacturers marketed 5G by exaggerating its actual performance and service scope or creating misleading impressions after the world's first 5G commercialization in 2019. This raised consumer expectations, but the actual perceived speed and coverage significantly differed from the advertisements, leading to controversy and damage.

Main Content

1. Exaggerated Elements in 5G Advertising

Speed Exaggeration: Advertisements used phrases like "20Gbps ultra-fast" and "20 times faster than 4G," but the average download speed perceived by actual consumers was only around 800Mbps to 1.5Gbps. Particularly indoors or underground, there was little difference from 4G, or it was even slower in some cases.
Coverage Exaggeration: Contrary to advertising slogans like "nationwide network" and "5G anywhere in the country," 5G base stations were mainly deployed in major cities, and in rural areas or deep indoors, 5G signals were often unavailable, causing automatic switching to 4G.
Service Exaggeration: Killer services such as "ultra-low latency (under 1ms)," "real-time remote surgery," and "autonomous driving" were emphasized, but in reality, services that general consumers could experience were limited. Except for gaming and video streaming, they failed to provide differentiated experiences.

2. Domestic Cases

SK Telecom, KT, LG Uplus: At the time of the 5G launch in 2019, they emphasized "20 times faster speed than 4G when subscribing to 5G plans," but according to a Korea Consumer Agency investigation, actual speeds were only about 10% of the advertised level. In 2020, the Fair Trade Commission issued corrective orders and fines to these telecom companies for exaggerated advertising.
Galaxy S20 5G Advertisement: Samsung emphasized "8K video streaming with 5G," but this feature was actually only possible in a Wi-Fi environment, not on the 5G network, causing controversy.

3. International Cases

AT&T (USA): Under the name "5G Evolution," it advertised 4G LTE-A as if it were 5G, leading to a consumer class-action lawsuit. In 2020, it was fined $50 million by the FTC.
EE, Vodafone (UK): They advertised "ultra-high-definition game streaming with 5G," but the service was actually sufficiently possible with 4G, and 5G coverage was only 30% of the advertised area, resulting in sanctions from the ASA (Advertising Standards Authority).

4. Consumer Damage and Responses

Plan Complaints: 5G plans were 30-50% more expensive than 4G, but the perceived speed difference was minimal, leading consumers to complain that they "didn't get value for money." In 2021, the Korea Consumer Agency reported that applications for damage relief related to 5G increased by 300% compared to the previous year.
Restrictions on Switching to LTE Plans: Telecom companies blocked 5G subscribers from switching to LTE plans or imposed penalties, causing controversy. In 2022, the Ministry of Science and ICT recommended that telecom companies allow switching to LTE plans.
Lawsuits and Sanctions: In 2023, the Seoul Central District Court ruled partially in favor of a class-action lawsuit against SK Telecom for its exaggerated 5G speed advertisements, calling it "consumer deception." The Fair Trade Commission imposed total fines of over 10 billion won on three telecom companies between 2020 and 2023.

Latest Trends

Changes from 2024 to 2025

Strengthened Regulations: In 2024, the Korea Communications Commission revised the "5G/6G Advertising Guidelines," mandating that actual measured speeds and coverage must be displayed. Violations can result in fines of up to 3% of sales revenue.
Changes in Consumer Perception: According to a 2025 Gallup Korea survey, trust in 5G advertisements plummeted from 70% in 2019 to 35% in 2025. Consumers have developed a strong perception that "5G equals exaggeration."
Caution in 6G Marketing: Starting in 2025, some telecom companies have begun marketing by mentioning 6G, but there is a strong industry voice that "we must not follow the path of 5G exaggerated advertising." The Korea Information and Communication Promotion Association plans to introduce a pre-review system for 6G advertisements.
Actual Performance Improvements: Since 2024, 5G base stations have been expanded by over 30%, and commercialization of the 28GHz band (high-frequency) has begun in earnest, improving speed and latency in some areas. However, it is still evaluated as falling short of advertising levels.
International Trends: The EU mandated the public disclosure of actual network performance data in telecommunications advertisements through the "Digital Fairness Act" in 2025, and the US FCC launched a program to verify the accuracy of 5G coverage maps.