Consumer advocacy groups want Walmart’s Roblox game audited for ‘stealth marketing’ to kids

techcrunch.com:

A number of consumer advocacy groups have a problem with Walmart’s entry into the metaverse. The online retailer last fall announced the launch of two new virtual worlds on Roblox, Walmart Land and Universe of Play, aimed at engaging the next generation of shoppers. The experiences allow Roblox users to play games featuring toys and popular kids’ characters, earn virtual toys that drop from a blimp, complete challenges, and explore “toy worlds,” among other things. But the groups argue that Walmart is blurring the lines between advertising and organic content and doesn’t properly disclose that the content within these virtual worlds are essentially ads and should be labeled as such.

Walmart, however, disputes these allegations and says it’s in compliance with U.S. children’s privacy laws.

The groups, led by the ad watchdog truthinadvertising.org (TINA.org), sent a letter to the Children’s Advertising Review Unit (CARU), asking them to audit Walmart’s Roblox games.

CARU is a part of the larger nonprofit BBB National Programs, which oversees a dozen industry self-regulation programs in the U.S. In January 2001, CARU’s program became the first Federal Trade Commission (FTC)–approved Safe Harbor under the U.S.’s children’s online privacy law, COPPA. That means participants who adhere to CARU’s guidelines are considered to be in compliance with COPPA, which protects them from any FTC enforcement action.

Simply put, being flagged as being potentially noncompliant with CARU’s program is not something a participant would want to happen, as it could put them on the FTC’s radar.

In the letter, the advocacy groups write to CARU’s senior vice president Dona Fraser to warn the organization about Walmart’s Roblox experience, Universe of