- RBLX
-2.18%
Shares of Roblox (NYSE:RBLX) declined 3% on Tuesday after Bleecker Street Research published a report questioning the effectiveness of the gaming platform’s child safety measures and highlighting potential changes in user growth trends.
Bleecker Street disclosed that it holds a short position in Roblox, meaning the research firm has a financial interest in a decline in the company’s share price.
The report presented findings from tests conducted on third-party account marketplaces, alongside an analysis of user activity, creator payments and company guidance.
The allegations and estimates were presented by Bleecker Street and have not been independently verified.
What Did Bleecker Street Research Say About Roblox’s Age Verification System?
Bleecker Street questioned the effectiveness of Roblox’s age verification procedures, particularly the platform’s reliance on a one-time facial scan.
The research firm argued that users could potentially bypass age-related safeguards by purchasing accounts that had already completed verification.
According to its report, Bleecker Street purchased 100 age-verified accounts registered to children through several third-party marketplaces.
The accounts cost a combined $190.91.
Researchers reported accessing all 100 accounts from five different countries within two hours without being asked to complete additional age verification.
The firm also identified nine active marketplaces offering previously verified accounts.
Four of those marketplaces reportedly contained more than 65,000 listings.
Bleecker Street presented these findings as evidence of potential weaknesses in the platform’s account verification controls.
What Concerns Did the Report Raise About Parental Controls?
The report also alleged that certain parental restrictions could be modified or bypassed.
In one test described by Bleecker Street, an account registered to a user aged between 13 and 15 was reportedly able to reduce its parental restrictions using a debit card belonging to an eight-year-old.
The researchers said the account subsequently established unmoderated communication with an adult account that had completed facial verification.
Bleecker Street further alleged that accounts registered to minors could access inappropriate material, including sexually explicit content and extremist imagery.
These claims concern the effectiveness of Roblox’s moderation systems and parental control mechanisms.
The report’s findings do not, on their own, establish how frequently such incidents occur across the platform’s wider user base.
