Though the state’s consumer fraud claims will proceed to trial, Roblox was granted reprieve from having to face Section 230 claims accusing the gaming platform of lacking moderation and addictive gameplay.
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…
Insurance fraud involves making false or exaggerated claims to an insurance provider.
- Hard Fraud: Someone deliberately causes a loss (e.g., setting fire to a warehouse or staging a car accident) specifically to collect a payout.
- Soft Fraud: More common and often viewed as “victimless” by the perpetrator. It involves exaggerating a legitimate claim, such as overstating the value of stolen items in a home burglary to cover the deductible.