Roblox Exploits Children, Exposes Them to 'Sexualized Content': Class Action

The loyalty of millions of children has helped turn online gaming platform Roblox into "a wild success,” but the platform “systematically takes advantage" of kids and exposes them "to unsafe, unregulated, and grotesque virtual experiences,” alleged a class action Friday (docket 3:24-cv-00963) in U.S. District Court for Northern California in San Francisco.

The complaint cited a 2018 Roblox news release in which the platform called itself the largest entertainment website in the world for kids, with millions of users, nearly 10 million of whom are active developers on the platform. Most Roblox users are minors, it said. In 2018, Roblox claimed that more than 7% of U.S. kids aged 9-12 used the platform monthly.

But the Roblox platform is “dangerous” for children because of “predatory conduct from adult users, including simulated violence and sexual activity,” said the complaint. In addition, the platform is designed “to harm children with addictive conduct and deceptive commercial advertising,” it said.

Roblox has built its platform around profiting from the creative development of its users, mostly children, and “exploiting their labor” for profit, the complaint alleged. Users can buy virtual items using “Robux” to be used in games or apps within the Roblox ecosystem, and they bought $2.39 billion worth in the first nine months of 2023, the complaint said. Robux are valued at 0.0125 U.S. dollar, meaning $4.99 buys 400 Robux, but the conversion rate “significantly differs” when users try to cash out of the platform; then, one Robux is worth $0.0035 dollar, it said. One thousand Robux can only be converted for $3.50, the complaint said.

Users can also earn Robux within the platform by designing experiences that other users visit and download, the complaint said. Roblox users can create purchasable content for others to buy, which generates commissions, paid in Robux, for the developer, it said. The commission has varied over time and has ranged between 90% and the current 30%, it said. Roblox is a user-generated metaverse, with most users children younger than 13; therefore, children are “creating the ‘worlds’ or ‘games’ in Roblox that other users play and are creating a large amount of content available for sale” in Roblox or mobile Avatar shops — "all to the benefit of Roblox,” it said.

In order to convert Robux to dollars, users must meet challenging requirements, including having a minimum of 30,000 earned Robux in their account and paying a monthly subscription fee, ranging from $4.99-$19.99, the complaint said. Roblox “makes money every time Robux is involved in a transaction, whether selling an item directly to a user, or taking a cut from user-to-user sales,” it said. Roblox “is thus exploiting child labor and offering children nearly worthless digital currency for their labor,” it said.

Due to their age, most Roblox users rely on parents or family members to buy Robux for them to use in the Roblox ecosystem, said the complaint. When plaintiffs Raymond and Laura Noel, of Kern County, California, bought Robux for their children’s gameplay, they did so under the impression it’s a “wholesome, educational platform for children,” it said. Had they known that the Robux they bought “would be used to support child exploitation,” and help grow the company at the expense of its young users, “they never would have purchased Robux as they did,” it said.

Roblox claims its platform is a “safe space” for meeting online friends, chatting and collaborating on projects and that it "prohibits explicit or romantic content,” said the complaint. Yet, the company was listed on the National Center on Sexual Exploitation’s “Dirty Dozen List” in 2023 “due to the sexual abuse and exploitation children face on Roblox, as well as the sexualized content and themes happening in the virtual Roblox world,” the complaint said.

Roblox claims it has a “zero-tolerance policy” for predatory behavior toward minors, or exploiting children, yet “its entire platform is built on such conduct,” the complaint said. By the time children or parents learn of the dangers associated with the platform and its “unfair practices” that take advantage of children, “users are so addicted to the game they cannot stop purchasing and spending Robux to continue gameplay,” it said.

In December 2022, nearly 4.2 million developers earned virtual currency on Roblox, but only 11,000 qualified to exchange Robux for dollars, and only 8,800 did so, said the complaint. Roblox generated $2.2 billion in revenue in 2022. The company said its developers receive 24.5% of game sales in Robux, but the company also reported it only plays 17 cents on every dollar earned, it said.

By keeping profits for developers within its system, Roblox profits from every transaction made with the profits, but it fails to adequately secure and protect developers’ Robux, and the “unregulated nature” of the platform makes it “rampant with scams and exploitation,” the complaint said. Children, it said, “can have thousands of dollars of Robux stolen from their accounts through these extensive scams and fraudulent actions.”

The Noels have spent $75-$150 a month on Robux for their children to spend in the gaming platform, said the complaint. The funds were primarily spent through Xbox Live or on gift cards, it added. The plaintiffs wouldn’t have spent funds on Robux if they had known Roblox’s platform was founded on “exploitation” of their children and others that make up the Roblox user base, it said.

Causes of action include violations of California’s Consumer Legal Remedies Act, Unfair Competition Law and False Advertising Law; fraudulent concealment and misrepresentation; and unjust enrichment. The plaintiffs seek an order enjoining Roblox from the policies and acts described; actual and punitive damages, plus restitution and disgorgement; attorneys’ fees; legal costs; and pre-judgment interest. Roblox didn't comment Tuesday.