MONTGOMERY, Ala. (CN) — Alabama Attorney General Steve Marshall announced Tuesday that the state has reached a first-of-its kind settlement with Roblox Corporation that will force the popular online gaming platform to roll out major new protections for children, while paying up to $12.2 million.
“This is about is the young people that stand here to my right, making sure they have an opportunity to engage online in a way that’s consistent with their parents’ wishes, but also removes the threat from outside predators trying to do bad things,” Marshall said during a news conference where he was flanked by law enforcement professionals, parents and school children.
The agreement resolves the state’s concerns about how Roblox protects its youngest users from strangers, inappropriate content and other online risks, but absolves the company of any wrongdoing.
Under the four-year deal, Roblox must make several big changes immediately: By May 1, every new or existing user will have to verify their age with something stronger than just typing in a birthday. Roblox will use facial-age estimation or government ID checks before anyone can use chat features.
Once age is verified, Roblox will block private chats between adult users 18 and older and users under 16 unless the adult is on the child’s small list of “trusted friends” approved by a parent. The company will also keep sending clear warnings to kids the first time they start a private chat, reminding them about talking to strangers and taking conversations off the platform. Those reminders will come at least every three months.
Roblox will also create a “default content mode” for users under 16 with access only to games and content that has been screened and rated as appropriate. Experiences labeled for adults or marked “restricted” will be off-limits to minors. Developers who lie about their game’s content will face warnings, removals or account bans.
Chief Counsel Katherine Robertson, who helped negotiate the settlement for the state, noted Roblox will use facial recognition features tested and approved by the state, while all messages between adults and children will remain un-encrypted.
“My takeaway from this as a mom is that Roblox is meeting parents halfway, but there is still an extremely important role for parents to play,” she said, encouraging parents to be more engaged with their children’s online activities. “This platform, like any platform that is internet accessible, is always going to have to deal with emerging threats. And if it’s not Roblox, it’s going to be another one.”
New tools for parents will arrive by July 1, allowing administrators of child accounts to monitor chats, connections, spending, time online and content accessed. Roblox will also push families to link accounts and will block personalized ads for all users under 16.
The company also agreed to publish yearly transparency reports on content moderation and safety improvements, train Alabama law enforcement and share some of its safety technology with the public. Roblox agreed to continue reporting serious threats to police and the National Center for Missing and Exploited Children.
Money from the settlement — $5.7 million in the first year, then $2.5 million each of the next two years, and $1.5 million in year four — will go into the attorney general’s Safe School Initiative Fund. That money can pay for online-safety education, enforcement, and other public-protection programs.
If Roblox breaks key promises, the state can demand up to $5 million in extra “liquidated damages,” with the amount dropping each year.
The deal also includes a “most-favored-nation” clause: if Roblox gives another state better safety rules or bigger payments in the next four years, Alabama automatically gets the same upgrades. The agreement takes effect immediately and runs through 2030 unless extended.
Marshall said the platform has an estimated 100,000 regular users in Alabama.
“We think we have created a framework that can be mirrored by states across the country that will not only protect Alabama’s children, but will protect America’s kids,” he said. “We have no tolerance for child exploitation and we will take action and deliver results when we see that Alabama’s children are engaged in vulnerable activity.”
Marshall noted the state has a similar ongoing lawsuit against TikTok, but he did not provide an update. Elsewhere in the nation, Roblox is facing similar lawsuits in Iowa, Florida and Texas, among other states. The company is also under fire for allowing minor children to essentially gamble with real money.
In an emailed statement, Roblox Chief Safety Officer Matt Kaufman said the agreement “reflects a shared commitment to the safety and wellbeing of Alabama students.”
“This resolution supports Alabama’s Safe School Initiative and the vital role of school resource officers and reinforces our work to set the gold standard for digital safety,” Kaufman added. “We value this collaboration with the state of Alabama and remain dedicated to our shared goal of helping protect young people online.”
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