The Korea Fair Trade Commission (KFTC, Chairperson Han Ki-jeong) has issued a corrective order and imposed a fine of 36 million KRW on the online game service provider KOG Co., Ltd. (hereafter "KOG") for misleading users about the winning mechanism and probability of probability-based items (hereafter "items") sold in its online PC game, Grand Chase Classic.
Grand Chase Classic is a massively multiplayer online role-playing game (MMORPG), in which players aim to increase their characters’ overall combat power to hunt monsters and enjoy higher-level adventures.
From August 3, 2022, to February 27, 2023, KOG falsely advertised that users could win the probability-based item “Orb Seal Release Scroll” (hereafter “Scroll”) by chance, even though the actual mechanism required a point accumulation system where a user must reach a specific point threshold to obtain the item with a 100% chance. This constitutes a misrepresentation of a key aspect of the item structure, which significantly influences consumer purchasing decisions.
Users strive to enhance their characters’ overall combat power, which is determined by attributes such as attack and defense, as well as equipped gear. Items can be obtained either (1) by completing missions in-game or through guaranteed purchases in the in-game shop, or (2) by acquiring “Orb Seal Costumes” via Scrolls, which are awarded upon winning a draw. The latter items are superior in both appearance and attributes.
While regular shop-bought costumes provide only one attribute and are of lower quality and design, Orb Seal Costumes offer better designs and two attributes, making them essential for players seeking high-tier items.
To obtain an Orb Seal Costume through Scrolls, a user must reach a certain point level. If the point requirement (3,840 points) is not met, the probability of winning is 0. Only after reaching the required points does the user have a 100% chance of winning.
However, KOG falsely advertised that winning was based on probability, similar to other random draw items, misleading consumers into thinking they had a chance of winning with each use of the Scroll.
The probability mechanism of items is a crucial factor in consumer purchase decisions. Since game items are intangible digital goods transacted electronically and remotely, consumers cannot independently verify their characteristics. Thus, they rely on the seller’s disclosed probabilities. Concealing or omitting that the Scrolls operate on a point accumulation system rather than random chance constitutes consumer deception.
Consumers are highly likely to purchase Scrolls under the false expectation that they might win an Orb Seal Costume with a single use. This misleading impression is supported by the fact that approximately 3 billion KRW worth of Scrolls were sold during the aforementioned period and that many consumer complaints were filed after KOG disclosed the true mechanism.
Such actions violate Article 21 of the Act on the Consumer Protection in Electronic Commerce, which prohibits misleading or deceptive conduct that induces consumers into transactions.
Article 21 (Prohibited Acts)
(1) A business operator or mail-order distributor shall not engage in any of the following acts:
- Inducing consumers or engaging in transactions with them by informing them of false or exaggerated facts or by using deceptive means, or obstructing the withdrawal of an offer or termination of a contract.
This action by the KFTC is significant in that it sanctions deceptive practices involving item information, which has a major impact on consumer choice and is closely tied to the profitability of online game companies.
The KFTC will continue to rigorously enforce the law against violations of the Electronic Commerce Act by online game providers to foster a fair gaming market environment.