The Consumer Financial Protection Bureau (CFPB), the U.S. agency dedicated to shielding consumers from unfair practices in the financial realm, has come up with a new proposal aimed at safeguarding Roblox users from scams and hacks. They’re also reaching out to players who spend virtual currency, seeking their input on the challenges they’ve encountered and how companies responded when they filed a complaint about a scam.
This proposal doesn’t introduce a new law but rather seeks to reinterpret an existing one, the Electronic Fund Transfer Act (EFTA). The EFTA, which dates back to 1978 during President Jimmy Carter’s tenure, initially aimed to protect people from unauthorized debit transactions when ATMs first became popular. The CFPB’s intent is to broaden this law to cover specific gaming platforms, such as Roblox.
The bureau highlighted in a blog post how gaming currencies and accounts are swiftly evolving, increasingly resembling traditional banking and payment systems. They noted that, with these changes, players and sometimes their parents or guardians are experiencing difficulties such as unauthorized transactions, account hacks, theft, scams, and losing assets. Many have reported that gaming companies, banks, or digital wallets offer little to no assistance. Often when people seek refunds, these are denied, and sometimes their gaming accounts get suspended after attempting a chargeback with their bank. Frustratingly, they end up in endless loops with automated customer service while just trying to get clear answers.
It’s important to note that the proposed changes won’t affect all games with in-game currencies. The focus is on platforms with user-shared monetized virtual marketplaces, like Roblox. The criteria outlined include the ability to pay for goods or services from multiple merchants, withdraw funds or get cash, or make person-to-person transfers.
On the Roblox platform, players purchase a currency known as Robux, which they often spend on in-game items and perks from other players. In return, developers on Roblox earn a share of these Robux when items or games they create are purchased. These developers can later convert Robux back into U.S. dollars through the Developer Exchange Program. Conversely, this rule might not apply to games like Fortnite, where players can’t sell cosmetic items amongst themselves or transfer V-bucks.
