The Consumer Financial Protection Bureau (CFPB), a US government agency tasked with shielding consumers from unfair and deceptive practices by banks and financial institutions, has put forward a new initiative aimed at safeguarding Roblox users from scams and hacks. Announced on Friday, the measure is also calling for feedback from players who spend virtual currency. The agency wants to gain insights into the difficulties they’ve encountered, especially how companies responded when users reported scams.
This proposed initiative isn’t about crafting a new law; rather, it seeks to reinterpret an existing regulation known as the Electronic Fund Transfer Act (EFTA). Enacted in 1978 during the presidency of Jimmy Carter, the EFTA was originally designed to protect consumers from unauthorized debit transactions as ATM usage began to rise. The CFPB’s aim is to expand the reach of the EFTA to include certain gaming platforms like Roblox.
The agency highlighted in a blog post that gaming currencies and accounts are rapidly evolving, increasingly resembling banking and payment systems. As this shift has occurred, gamers—or sometimes their parents and guardians—have reported struggles such as difficulties converting dollars to in-game currency, unauthorized transactions, account hacks and takeovers, theft, scams, and asset loss. They’ve also noted minimal or no assistance from gaming companies and financial institutions. Refunds are frequently denied, and players find their gaming accounts suspended after seeking refunds from their banks. Many are left in endless loops with AI-driven customer service, trying desperately to get clear answers.
Not all games with in-game currencies and transactions are targeted by this proposal, but instead, the focus is on those with monetized virtual marketplaces shared between users, much like Roblox. The criteria outlined in the proposed law highlight three key features: the ability to pay for goods or services from multiple merchants, withdraw funds or obtain cash, and conduct person-to-person transfers.
In Roblox, users purchase a currency called Robux, which they often use to buy in-game perks and cosmetics from other users. Developers on the platform earn a cut of the Robux spent on their creations and can convert Robux to US dollars through the Developer Exchange Program. Conversely, games like Fortnite might not be affected by this rule, as users cannot resell cosmetic items or transfer V-bucks to one another.
