The Consumer Financial Protection Bureau, also known as the CFPB, has rolled out a proposal aimed at safeguarding Roblox users from scams and hacks. This U.S. government agency, dedicated to shielding consumers from unfair practices by banks and financial institutions, is seeking insights from players who spend virtual currency. They want to hear about any issues these players have faced, especially concerning how companies have addressed reported scams.
This proposal doesn’t introduce a new law. Instead, it aims to reinterpret an existing regulation, the Electronic Fund Transfer Act (EFTA), which was first established back in 1978 under President Jimmy Carter. Initially, the EFTA focused on protecting consumers from unauthorized debit transactions as ATMs were becoming prevalent. Now, the CFPB is considering extending this rule to certain video game platforms like Roblox.
In a blog post, the agency highlighted that gaming currencies and accounts are evolving quickly, resembling banking and payment systems more closely over time. As these changes unfold, gamers—and sometimes their parents or guardians—are encountering various problems. These include difficulties in converting dollars to in-game currency, unauthorized transactions, account hacks and takeovers, theft, scams, and asset loss. Many have reported receiving little to no assistance from gaming companies or financial institutions. Issues such as denied refunds, suspended accounts after seeking a refund from their bank, and frustration with AI-based customer service are common complaints.
This potential reinterpretation wouldn’t impact all games with in-game currencies and transactions. It primarily targets platforms with a monetized virtual marketplace shared among users, like Roblox. The language in the proposal outlines three key criteria: the ability to pay for goods or services from multiple merchants, withdraw funds or obtain cash, and conduct person-to-person transfers.
Roblox players often purchase a currency called Robux, which they use to buy in-game enhancements and cosmetics from other users. In return, developers earn a portion of Robux spent on the items and games they create and can convert those earnings to U.S. dollars through the Developer Exchange Program. In contrast, a game like Fortnite might not be affected as users there can’t resell cosmetic items or transfer V-Bucks between themselves.
