'Pokemon Go' rapped for unfair refund policy

Seen from above are images captured from in-game shop of “Pokemon Go” where users can purchase packs of virtual cash and items. / Korea Times file

By Yoon Sung-won

Niantic, the provider of megahit mobile game “Pokemon Go,” is drawing criticism here for its “unfavorable customer terms,” Korea Consumer Agency (KCA) said Monday.

As with many other mobile games available in Korea, “Pokemon Go” users have to purchase a pack of in-game cash to get game items. The game’s terms and conditions stipulate that users can be refunded for in-game cash only when they request it within seven days of purchase and without having used any of it.

This means, for instance, a user who paid 110,000 won ($96) to purchase a pack of 14,500 in-game currency ― called “Poke Coin” ― and used 100 Poke Coins cannot get a refund for the remaining 14,400 virtual coins.

“This is a very unfavorable refund condition compared to those of most online games in Korea, which allow refunds with about a 10 percent deduction from the leftover virtual cash,” an official of the agency said. “It needs to be reformed.”

The KCA also pointed out Niantic’s terms and conditions allow the company to unilaterally block a user’s account and stop providing the service without notice. Those who have had his or her account blocked cannot even apply for a refund of virtual cash. The company doesn’t have a system to accept complaints from users.

The game’s terms stipulate that the company doesn’t guarantee the quality of content. Its policy also says it doesn’t take full responsibility over any negligent accidents and property damage caused during the use of the service, providing Niantic with extensive conditions for immunity.

Considering that “Pokemon Go” is an augmented reality-based game and thus users have to walk around while playing the game on their mobile phones, it is more likely to cause accidents, especially for young people. When the game became a nationwide craze with its release in January, police launched a campaign for pedestrians and drivers to prevent accidents.

Under Korea’s rules on standardized contracts, no terms can free the business operator from legal responsibility if it causes problems on purpose or by grievous mistake.

The agency said the terms of “Pokemon Go” are infringing consumers’ rights.

“The terms are excessively undermining normal use of the service and are even restraining consumers’ cooling-off rights,” the official said. “We will recommend the provider of Pokemon Go to reform the terms that are unfavorable for users. We also plan to discuss the issue with our U.S. counterpart, the Better Business Bureau, if necessary.”