Roblox accused of deceptive marketing in complaint to FTC

Roblox is being accused of deceptive marketing, according to a letter filed today by Truth in Advertising (TINA), an ad watchdog group, with the Federal Trade Commission. The letter said what is considered advertising within Roblox is not clear. TINA claims that the ambiguity of Roblox's advertising particularly impacts children, who make up more than half of Roblox’s 50 million daily active users. TINA cited the multitude of experiences created by brands, from Nike to Hyundai, as examples of “advergames,” or advertisements disguised as games, which it says draw in unwitting consumers, their money and personal data. In a comment provided by a company spokesperson, Roblox reiterated its commitment to ad safety on its platform, including that it "has strict guidelines for developers that want to promote or use ads within their experience" and "expectations that all developers adhere to Community Standards we strictly enforce." Roblox has become a go-to destination for brands looking to dip their toes into the metaverse, as well as reach younger gamers who may avoid more traditional channels of marketing. Roblox’s official community standard stipulates that ads cannot contain content for users under the age of 13, in order to protect children from being targeted by advertisers. "We have stringent rules and monitoring processes aimed at combating content to exploit or trick users," the statement from Roblox read. But the platform does little to enforce that policy, TINA says. Brands have also allegedly entered organic games on Roblox without expressly disclosing the appearance as a sponsored event, according to the complaint. Other claims made by TINA include the presence of avatar influencers who may be shilling brand accessories without disclosing their connections to those brands. Virtual influencers are expected to stake a large claim as creators in the metaverse, so if there remains any uncertainty as to how they be partnered with, brands should want to work that out as soon as possible. Metaverse glossary for brands TINA also cited that Roblox misleads consumers into thinking they can make large sums of money by being developers when the likelihood of such is apparently low. The system of earning Robux, the platform’s in-game currency, is also flawed, says TINA, which previously filed a Freedom of Information Act (FOIA) request for nearly 1,300 consumer complaints, many of which concern the currency. The complaint to the FTC calls for the government body to investigate Roblox based on TINA’s claims and take appropriate enforcement action. For example, undisclosed connections between endorsers and brands can carry a fine of up to $46,517 by the FTC, according to TINA.

Roblox accused of deceptive marketing in complaint to FTC

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