Republic of Korea: Korea Fair Trade Commission imposed corrective order and a fine on Cog Co. over violations of Electronic Commerce Act

Description

Korea Fair Trade Commission imposed corrective order and a fine on Cog Co. over violations of Electronic Commerce Act

On 14 April 2025, the Korea Fair Trade Commission (KFTC) imposed corrective measures and a fine of KRW 36 million on Cog Co. for violating the Electronic Commerce Act by misleading consumers regarding the probability-based item "Seal Release Scroll" in the online game Grand Chase Classic. The company falsely advertised the item as obtainable through chance, while its actual acquisition relied on a point-accumulation system requiring a fixed threshold (3'840 points) to guarantee success, with a 0% success rate below this threshold. Additionally, Cog provided inaccurate probability rates (1.10%–17.16%) in February 2023, which were later retracted. The KFTC determined these actions constituted deceptive practices under Article 21(1)(1) of the Act, citing consumer harm evidenced by KRW 3 billion in sales and user complaints.

Original source

Scope

Policy Area
Consumer protection
Policy Instrument
Fair marketing and advertising practice requirement
Regulated Economic Activity
software provider: app stores, software provider: other software
Implementation Level
national
Government Branch
executive
Government Body
consumer protection authority

Complete timeline of this policy change

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2025-04-14
in force

On 14 April 2025, the Korea Fair Trade Commission (KFTC) imposed corrective measures and a fine of …