Roblox hit with another lawsuit targeting addictive game design

Online gaming platform Roblox Corp. is accused of developing addictive games that induce children to make in-game micro-transactions that collectively amount to billions of dollars every year. It's the latest in a rash of new lawsuits filed in state and federal courts in California and elsewhere accusing social media giants and tech companies of fostering addictive behavior in minors.

Three complaints filed in Los Angeles County Superior Court on Friday claim seven causes of action, including negligence, false representation and intentional tort (fraudulent deceit, deceit, concealment). All three claims were filed by Reich and Binstock LLP and Law Offices of Richard Schechter PC, both of which are based in Houston, Texas.

The plaintiffs allege that the games on Roblox are designed to cause addiction in minors, which is then used to siphon money through the clever use of unavoidable solicitations and gameplay that prioritizes purchasing behavior over strategy and skill. Individual user data is allegedly used to manipulate the presentation of in-game purchasing offers to elicit more purchases.

The complaint also names Microsoft Corp., Apple Inc., and Mojang AB, the maker of the game "Minecraft."

Roblox and Microsoft did not respond to emailed requests for comment.

"The defendants' use of microtransactions, individually and in concert with one another, is carried out with such efficiency that it resembles a choreographed collaboration. The defendants' target users with in-game downloadable content to purchase by using algorithms and design features incorporated into the Products which, in turn, results in profit to the system entities, likewise defendants herein," Dennis C. Reich wrote in the complaint. Freeman v. Roblox Corp., et al., 24STCV20804 (L.A. Super. Ct., filed Aug. 16, 2024).

Roblox is an online gaming platform that allows gamers to play games created by other gamers or to create their own games through Roblox Studio. It is free to use, but the design encourages users to purchase its virtual currency, Robux, which is used to purchase upgrades or to gain access to areas that were off-limits.

Reich did not respond to emailed questions as to why he and his colleagues opted to file in Los Angeles trial court, given the San Mateo company has been accused of similar conduct in federal court.

A lawsuit accusing Roblox, Epic and Microsoft of similar conduct was dismissed by a federal court in Illinois in June. That complaint, filed last November, stated that the minor plaintiff, I.C., required medical treatment including counseling and medication therapy because of gaming addiction. Epic's dismissal with prejudice followed an April motion for sanctions, filed by Epic after it emerged that I.C. had only held an account with Epic Games for three days prior to filing the complaint. Jimenez v. Microsoft, 3:23-cv-03678-SPM (S.D. Ill. filed Nov. 14, 2023).

A federal lawsuit filed in California's Northern District in February accused Roblox of exploiting child labor by allowing them to purchase Robux, which are difficult to cash out because they have little value relative to the USD. The parties are currently in private mediation. Noel et al. v. Roblox Corp., 3:24-cv-00963-AGT (N.D. Cal., filed Feb. 16, 2024).

The company has also been accused of harboring child predators. A 45-year-old man from Florida was charged with sexual crimes against children in 2022. He allegedly confessed that a 13-year-old on the platform had shared his password so that the defendant could put gift cards on his account, according to media reports.