Nexon Slapped With $8.9M Fined over Alleged Misleading Consumer Practices

Nexon Co., Ltd., the South Korean video game publisher, has been fined by the Korea Fair Trade Commission (KFTC) for alleged violations of the country's Act on Consumer Protection in Electronic Commerce. The Korean office of the company sustained a hefty KRW11.6 billion or about $8.9 million.

Deceptive Practices Claims Over Sale of In-Game Items

The KFTC said on Wednesday, Jan. 3, that Nexon Korea Corp. was fined for misleading its customers over selling in-game items in its popular game titles, including "MapleStory" and "Bubble Fighter."

As per The Korea Economic Daily, the antitrust regulator said that Nexon, which is also the largest stakeholder in Nexon Games Company, has lowered the likelihood of the players fishing out their preferred items called "Cube" without giving any notice for this change. This move has set the chances of winning some Cubes to zero.

The Cube is a paid game item that resets or upgrades the power of equipment worn by the characters in the game. Typically, players shell out around KRW2,000 to draw a Cube through a feature that functions like a slot machine.

Now, Nexon reportedly changed the probability structure again from August 2011 to March 2021 so that some options with especially high preference do not appear when players play. The company was said to have earned KRW550 billion in tentative sales from the sale of Cubes between September 2010 and March 2021. This step violated the laws because Nexon failed to inform players about the adjustment.

"Nexon made announcements about changes to the games hundreds of times from 2010-21, but it omitted the information about the probability adjustment," Yonhap News Agency quoted the KFTC. "Our judgment is that the company had aimed to lure customers by giving them false information and used deceptive means."

Record-Breaking Penalty Imposed By the KFTC

The fine imposed on Nexon Korea is considered record-breaking because this is the largest-ever penalty that the KFTC handed down for violating the country's Act on Consumer Protection in Electronic Commerce.

Meanwhile, in response to the penalty, Nexon accepted the decision and apologized to players for disappointing them. But then again, the company said it would still consider appealing to challenge the regulator's decision.

Photo by: Nexon PR Room