Roblox Agrees to a $10 Million Settlement Over Class Action Lawsuit

Roblox Agrees to a $10 Million Settlement Over Class Action Lawsuit
Photo by Oberon Copeland / Unsplash

Roblox Corporation, the company behind the popular online gaming platform, has recently agreed to a $10 million settlement as part of a class action lawsuit. The lawsuit claimed that the platform manipulated children by enabling them to make considerable purchases only to delete related content, apparently masked as content moderation.

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Photo by Vadim Bogulov / Unsplash

Roblox is a renowned online gaming platform that gives its users the freedom to create and play games developed by fellow users. As of the end of the first quarter of 2023, the platform boasted a staggering 66.1 million daily active users. Despite the platform's popularity and vast user base, it has been embroiled in controversy due to its alleged dubious practices.

According to the class action lawsuit, Roblox took undue advantage of its primary user base – children. The platform allegedly allowed young users to make significant in-game purchases. However, any content related to these purchases was purportedly deleted later under the pretext of content moderation. This deletion left parents unable to seek refunds for the deleted content, which led to the initiation of the lawsuit.

Although Roblox has not admitted any wrongdoing, it has agreed to a $10 million settlement to resolve the class action lawsuit. This settlement will benefit individuals who had a Roblox account before May 11, 2023 and had their content on the Roblox platform moderated and removed by Roblox.

Class members will receive a portion of the net settlement fund as part of the settlement terms. The exact amount of this share will vary and depend on the amount each class member spent on items within Roblox.

Class members whose settlement share is more than $10 can choose to receive their settlement benefit as a cash payment. However, all other class members and those who do not opt for a cash payment will receive their share of the settlement as a credit to their Roblox account.

The deadline for exclusion and objection is set for August 10, 2023, and the final approval hearing for the settlement is scheduled for September 27, 2023.

Class members must submit a valid claim form by August 10, 2023 to be eligible for a cash payment. No claim form is required for class members who wish to receive a Roblox credit instead of a cash payment.

The eligible individuals for this settlement are those who had a Roblox account before May 11, 2023, and had content on the Roblox platform moderated and removed by Roblox.

This case highlights online platforms' responsibilities, particularly those catering to children, hold. It serves as a reminder that businesses must operate transparently and ethically, ensuring that their practices do not exploit or harm their users, especially the young and vulnerable. Although this settlement does not constitute an admission of guilt by Roblox, it underscores the need for companies to be accountable for their actions and policies.

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