South Korean consumers will soon be able to report mobile carriers and retailers that advertise phone subsidies that don't match actual offerings.
The Broadcasting and Media Communications Commission announced Wednesday it will implement a "User Participation Reporting System" starting March 3 to prevent consumer harm from false or exaggerated subsidy advertisements and contract violations.
The commission identified reportable violations including: subsidy discrepancies between advertised and actual amounts, failure to provide contracts, omission of subsidy terms from contracts, pressure to sign up for expensive plans or unnecessary add-on services, and inaccurate information about retail locations.
The reporting system launches on March 3 through the Korea Communications User Protection Association website, coinciding with the pre-order period for Samsung Electronics' new Galaxy S26 (February 27 to March 5). Whistleblowers whose reports lead to confirmed violations will receive compensation of up to 200,000 won annually, with a maximum of four reports per person.
The commission said the initiative focuses on curbing false advertising and ensuring contract compliance, rather than excessive subsidy payments, following last year's repeal of the Mobile Device Distribution Improvement Act.
"We need voluntary user participation to quickly detect illegal and improper practices in the mobile device market," said Kim Jong-chul, chairman of the Broadcasting and Media Communications Commission. "This will be an important opportunity to establish a sound distribution environment."