Roblox sues ‘rule-breaking’ third-party marketplace PlayerAuctions

Roblox Corp. has filed a lawsuit against PlayerAuctions, a third-party website that sells digital goods for various games.

The developer is taking the marketplace to task for “infringing on [our] property, disrupting the virtual economy, and interfering with contractual relationships.” It hopes to shut down the buying and selling of digital Roblox goods on the site, which it alleges PlayerAuctions has “willfully” done despite several cease-and-desist letters.

Farmville creator Zynga previously sued PlayerAuctions in 2010 on similar grounds. According to CBS News, a settlement between Zynga and the site was reached for an undisclosed sum the following year, and games from the developer have not appeared on PlayerAuctions since.

PlayerAuctions’ Roblox marketplace gray areas

As Polygon notes, PlayerAuctions’ Roblox marketplace includes boosting services (paying someone to play under your account) and buying specific accounts or in-game pets for the Adopt Me game. Third-party marketplaces are technically not illegal, but players who use them can inadvertently violate a game’s user terms—according to the developer, 12-15 percent of players have been suspended or banned for unknowingly breaking the rules by using sites like PlayerAuctions in some capacity.

With young players such a key demographic for Roblox, this means PlayerAuctions is exacerbating the company’s problems of addressing child safety on its platform.

Roblox Corp.’s suit also points out the website features its trademarks, which “undercuts Roblox’s legitimate business operations, confuse its users, and diminish [our] ability to control the pricing and distribution of our game’s virtual goods.” The developer alleges 8-10 percent of players appealing their suspensions for real-money trading directly mentioned PlayerAuctions.

A Roblox Corp. representative told Polygon it would “continue to be vigilant to combat unauthorized use of our platform and hold those responsible accountable for their actions.” The developer also filed an injunction to prevent PlayerAuctions from using its trademarks while the suit is pending.

The full lawsuit can be read here.

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