Roblox must face Iowa consumer fraud claims

DES MOINES, Iowa (CN) — A lawsuit by Iowa’s attorney general against gaming giant Roblox will move forward after an Iowa state judge said Thursday that the platform can’t exempt itself from Iowa consumer protection law by claiming it isn’t “merchandise.”

While Polk County District Judge Celene Gogerty did dismiss some of the state’s claims over insufficient content moderation and addictive gameplay in her 12-page ruling, she found claims under the Iowa Consumer Fraud Act could proceed.

The act forbids unfair or deceptive practices “in connection with the lease, sale, or advertisement of any merchandise.” Roblox argued that its games are not “merchandise” within the meaning of the statute.

Roblox pointed out in an April hearing that its gaming platform is free, and it disputes the state’s argument that Roblox gift cards, called Robux, and toys sold at brick-and-mortar stores to lure minors onto the platform support a claim under the act because those sales do not amount to an “unfair practice” or “deception.”

Gogerty disagreed.

“There is still a user service agreement in place following the creation of an account, and both parties agree that one of the ways that Roblox makes money is by selling user data which it collects,” Gogerty wrote. “An ever increasing portion of our economy involves similar transactions, and to exempt them from the [Iowa Consumer Fraud Act] would create a large loophole that is not in keeping with the rest of the statute.”

Iowa Attorney General Brenna Bird sued Roblox in December 2025, claiming “Roblox is the perfect environment for child predators, pornographers, scammers, fraudsters, online sex rings and inappropriate content.” Roblox subsequently filed a motion in Polk County District Court asking the court to dismiss the suit.

“This ruling is a step forward in protecting our children from big tech companies,” Bird said in a statement. “Companies operating in Iowa can’t hide behind legal immunities when they actively deceive Iowans about the dangers present on their platforms.”

Gogerty also declined to dismiss several of Iowa’s unfair practices and deception claims brought under Section 230 of the federal Communications Decency Act, which protects online platforms from liability for some third-party content.

“The nexus of potential liability comes from Roblox’s statements to app stores, not from its publication of third-partyconduct,” Gogerty wrote.

Claims preserved for trial include the claims that Roblox falsely promised a “safety review of every uploaded image, audio, and video file” to create a false sense of security, that it intentionally misrepresented the amount of violent and sexual content on its platform to secure lower age ratings on various app stores, that it allows adult-child communications and that it lacks sufficient parental controls.

However, the judge separated out claims that the company’s content moderation was insufficient and that it failed to ensure age-appropriate content, and dismissed those.

Those claims “clearly fall within the protections” of Section 230, Gogerty wrote, adding that Roblox is protected because “courts have also routinely barred claims regarding the manner in which content is presented to a consumer, including algorithms to extend user time.”

*“*This lawsuit fundamentally misrepresents how Roblox works," a Roblox spokesperson said in a statement Thursday. “We are pleased the court narrowed the claims, and we believe that once the evidence is presented, we will prevail on those that remain. While no system can be perfect, Roblox is deeply committed to safety, with multiple layers of protection in place to help safeguard users.”

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