A new report from the University of Sydney has found popular children’s platform Roblox uses in-game purchase systems that may mislead young players about the real cost of spending, raising fresh questions for Australian regulators amid growing national concern about online harms affecting children. 

With more than 350 million monthly users globally - more than half under the age of 17 - Roblox has become one of the most significant digital playgrounds for Australian children. But researchers from the School of Architecture, Design and Planning say its monetisation model is not “freemium” but “paymium”, with spending deeply embedded in gameplay. 

“Parents are really struggling with this,” he said. “It’s hard to recognise what’s happening, and it’s happening in spaces where children are spending a lot of time.”

The study, Misleading and Deceptive Monetisation in Roblox, led by Professor Marcus Carter analysed a sample of popular Roblox “experiences” and found deceptive and misleading purchases in 14/15 games studied.  

Across the games examined in the study, researchers identified consistent design patterns likely to mislead child consumers about: the real monetary value of purchases, the likelihood of rewards, the necessity of upgrades and the consequences of not spending.  

 “We identified a consistent pattern across sampled games in which pricing representations, purchase prompts, and reward mechanics were designed in ways likely to mislead child  consumers about the cost, value, or consequences of spending,” said Professor Carter.”  

The report also highlights a range of design features that may further increase risks for young users. Many Roblox games incorporate gambling-like mechanics such as loot boxes and random rewards, alongside psychological pressure tactics that prompt spending after losses and use “near-miss” visuals to make wins feel attainable.

These systems are reinforced by false urgency through countdown timers and limited-time offers, as well as misleading pricing and pay-to-progress features. Together, these elements create what researchers describe as a commercial environment that can encourage ongoing and impulsive spending among children.

“Most parents think their child is playing a free game. What they don’t see is a sophisticated spending architecture built directly into the experience of play, with children being asked to make complex financial decisions in environments deliberately designed to obscure price, probability and value.” 

Sanika Vekhande, an Honours student and Roblox expert who assisted with the report, says that “On platforms like Roblox, financial exploitation isn’t separate from safety risks — it’s often part of the same problem. In some cases, predators are using in-game currency as a tool for coercion"

Ms Vekhande says the findings come at a critical time in Australia’s debate about digital regulation: “Roblox is not a niche platform. It is a mainstream social space for children. 

Professor Carter argues Roblox should be held accountable for the systems it profits from. Unlike traditional games, Roblox experiences are created by third-party developers and algorithmically promoted based on factors that include how effectively the experience monetises players.

“Roblox takes around 50 percent of revenue generated on the platform, but it’s not doing enough to ensure those systems are safe.”

Professor Carter said the platform’s pricing tactics bear striking similarities to recent deceptive pricing cases brought against major Australian retailers.

He said this comparison helps highlight the seriousness of the issue in a context Australian parents already understand.

“If this kind of pricing happened in a supermarket like Coles, it would be clearly regulated,” Professor Carter said. “But in Roblox, these practices are happening in environments primarily used by children, with far less oversight.”

Dr Milica “Milly” Stilinovic, a postdoctoral research associate with the University of Sydney’s Governing Immersive Tech Project, said the issue demands urgent and globally coordinated action.

“Australia has often been a leader in online safety, particularly when it comes to protecting children, and has helped set the agenda for debates around social media regulation worldwide,” she said. “But in this case, regulators appear to be dragging their feet on an issue that requires immediate attention.”

She said any response must reflect the scale of the platform.

“Roblox is a global platform, and the harms we’re seeing are not confined to one country,” Stilinovic said. “Addressing this effectively will require coordinated action across jurisdictions, not just isolated national responses.”