The retail giant Walmart has recently announced its foray into the metaverse, joining the likes of Roblox in exploring the potential of this emerging virtual world. However, Walmart’s approach has drawn criticism for its focus on children and concerns about responsible advertising. This article delves into the details of Walmart’s metaverse strategy and examines the backlash it has received.
Walmart, through its divisions Walmart Land and Walmart’s Universe of Play, is set to launch a range of game-like experiences on the Roblox platform. These experiences include a fashion show and a Jurassic Park-themed game centered around collecting virtual eggs. Players participating in these games can earn in-game tokens, prizes, and virtual merchandise known as “verch.”
Since early 2022, there have been indications that Walmart has been exploring opportunities in the metaverse space. The company has filed numerous patents related to cryptocurrency, non-fungible tokens (NFTs), and the metaverse. The recent collaboration with Roblox seems to be a strategic step towards capitalizing on the popularity of the platform. William White, the Chief Marketing Officer at Walmart US, explained that the decision to partner with Roblox was driven by the platform’s immense user engagement.
Roblox, as a metaverse platform, has a significant user base consisting of children under the age of thirteen, with approximately 25% of daily active users falling into this age group. This has raised concerns about Walmart’s involvement in the platform, as the retailer’s initiatives may attract young users who are vulnerable to targeted marketing. The inclusion of player messages like “making a toy wish list has never been this fun! Find them all at Walmart” has further fueled the criticism.
In April, the American non-profit organization Truth in Advertising filed a complaint with the Federal Trade Commission, accusing Roblox of neglecting its advertising responsibilities. The complaint argues that the platform has failed to comply with advertising rules, potentially exposing young users to manipulative marketing practices. Walmart’s active involvement in Roblox raises additional questions about responsible advertising practices and the potential exploitation of young users.
As the metaverse gains traction and becomes increasingly intertwined with people’s lives, it is essential for corporations like Walmart to ensure responsible engagement within these virtual worlds, especially when targeting young audiences. Balancing the pursuit of profit with ethical considerations is crucial to maintaining trust and mitigating harm.
Walmart’s entry into the metaverse through collaborations with Roblox has sparked both excitement and criticism. While the strategic move acknowledges the growing significance of the metaverse, concerns have been raised about targeting children and responsible advertising practices. As more companies explore the potential of the metaverse, it is imperative for them to navigate this virtual landscape with caution and prioritize the well-being of their users, especially when it comes to impressionable young minds.
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