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....