Second Life has seen a number of controversies. Issues range from the technical (
budgeting of server resources), to moral (e.g., pornography and
cyberbullying), to legal (
legal position of the Linden Dollar,
Bragg v. Linden Lab). Security issues have also been a concern.
Regulation In the past, large portions of the
Second Life economy consisted of businesses that are regulated or banned. Changes to
Second Lifes terms of service in this regard have largely had the purpose of bringing activity within
Second Life into compliance with various international laws, even though the person running the business may be in full compliance with the law in their own country. On July 26, 2007, Linden Lab announced a ban on in-world gambling due to federal and state regulations on Internet gambling that could affect Linden Lab if it was permitted to continue. The ban was immediately met with in-world protests. In August 2007, a $750,000 in-world Linden Dollar bank or
Ponzi scheme called
Ginko Financial collapsed due to a
bank run triggered by Linden Lab's ban on gambling. The aftershocks of this collapse caused severe liquidity problems for other virtual "Linden Dollar banks", which critics had long asserted were scams. On Tuesday, January 8, 2008, Linden Lab announced the upcoming prohibition of payment of fixed interest on cash deposits in unregulated banking activities in-world. All banks without real-world charters closed or converted to virtual joint stock companies by January 22, 2008. Typically, when asset server downtime is announced, users are advised not to build, manipulate objects, or engage in business, leaving them with little to do but chat and generally reducing confidence in all businesses on the grid. Another problem is inventory loss, in which items in a user's inventory, including those which have been paid for, can disappear without warning or permanently enter a state where they will fail to appear in-world when requested (giving an "object missing from database" error). Linden Lab offers no compensation for items that are lost in this way, although a policy change instituted in 2008 allows accounts to file support tickets when inventory loss occurs. Many in-world businesses will attempt to compensate for this or restore items, although they are under no obligation to do so and not all are able to do so. A recent change in how the company handles items which have "lost their parent directory" means that inventory loss is much less of a problem and resolves faster than in recent years. "Loss to recovery times" have gone from months (or never) to hours or a day or two for the majority of users, but inventory loss does still exist.
Second Life functions by streaming all data to the user live over the Internet with minimal local caching of frequently used data. The user is expected to have a minimum of 300 kbit/s of Internet bandwidth for basic functionality. Due to the proprietary communications protocols, it is not possible to use a network proxy service to reduce network load when many people are all using the same location, such as when used for group activities in a school or business.
Quality assurance Criticism of
quality assurance of
Second Life states that
Linden Lab focuses too much on bringing new features to the production environment instead of fixing long-standing bugs that, in the worst case, cause financial loss for the users. On April 30, 2007, an open letter signed by over 3,000 users was sent to Linden Lab to protest the
quality assurance process of the company. Linden Lab has responded to the open letter.
Frame rate Computer hardware and Internet connections capable of smoothly rendering high quality content in other
MMOGs may perform poorly in
Second Life, resulting in low
frame rates and unresponsive controls on even minimal graphical configurations. The problem is especially prevalent when large numbers of avatars congregate in one area. The problem is largely due to the fact that the world is entirely user created, and the majority of content created by users is made without any sort of basic graphical optimization. As a result, objects with both unnecessarily high polygon counts, and unnecessarily high resolution textures are prevalent. It is not uncommon for users to have to download and use upwards of a dozen times the amount of resources than would actually be required for the equivalent visual result. Certain areas have guidelines for script usage, which helps reduce lag by reducing resources used server-side, but does nothing to alleviate the primary issue above.
Congestion A single region (65,536 m2 of land hosted on a single
CPU) is set to accommodate a limited number of Residents (40 on 'mainland' regions, up to 100 on private islands), causing some popular locations such as teleportation points to become inaccessible at times. It is possible for an area of land a Resident has paid for to become inaccessible because another area in the same region has exhausted the avatar limit.
Customer security On September 8, 2006, Linden Lab released a news bulletin that revealed their
Second Life database had been compromised and customer information, including encrypted passwords and users' real names, had likely been accessed. However, it was later revealed that the hacker had in fact been focused on trying to cheat the in-world money system and their access to personal information was believed incidental, although a full alert was still raised for safety's sake.
Fraud and intellectual property protection Although
Second Lifes client and server incorporate
digital rights management technology, the visual data of an object must ultimately be sent to the client for it to be drawn; thus unofficial third-party clients can bypass them. One such program,
CopyBot, was developed in 2006 as a debugging tool to enable objects to be backed up, but was immediately hijacked for use in copying objects; additionally, programs that generally attack client-side processing of data, such as
GLIntercept, can copy certain pieces of data. Such use is prohibited under the
Second Life TOS and could be prosecuted under the
Digital Millennium Copyright Act. Linden Lab may ban a user who is observed using CopyBot or a similar client, but it will not ban a user simply for uploading or even selling copied content; in this case, Linden Lab's enforcement of intellectual property law is limited to that required by the "safe harbor" provisions of the
DMCA which used to require a regular mail DMCA complaint. However, since 2019 an electronic DMCA complaint form is also available. A few high-profile businesses in
Second Life have filed such lawsuits, none of the cases filed to date have gone to trial, and most have been dismissed pursuant to a settlement agreement reached between the parties. Another case where settlement and dismissal was gained may be found in the matter of Eros, LLC v. Linden Research, Inc. As of October 7, 2010, the case was transferred to private mediation and the plaintiffs filed for dismissal of charges on March 15, 2011. Most users in the world as paying, private individuals are, likewise, effectively unprotected. Common forms of fraud taking place in-world include bogus investment and pyramid schemes, fake or hacked vendors, and failure to honor land rental agreements. A group of virtual landowners online have filed a class action lawsuit against the company, claiming the company broke the law when it rescinded their ownership rights. The plaintiffs say a change in the terms of service forced them to either accept new terms that rescinded their virtual property ownership rights, or else be locked out of the site.
OpenSpaces Linden Lab, for a period, offered
Openspace regions to users: regions which were purchased in packs of four, with all four running on a single CPU core, intended to be placed next to an existing region to create the effect of larger size. The fee for 4 Openspaces was identical to that for a single private region. However, in March 2008, this rule was modified to permit Openspaces to be bought individually and placed elsewhere, and increasing the prim load each one could handle. Openspaces were made available for a US$415 downpayment plus a US$75 monthly fee. In October 2008, Linden Lab announced that the Openspaces being used for this purpose were being misused; there was in fact no technical throttle limiting their usage. Linden Lab raised the monthly fee per Openspace to US$125, the same cost as half a region; added an avatar limit of 20; and renamed it to Homestead. A week after the initial announcement Linden Lab stated its intention to add technical limits. A revised Openspace product, with far fewer prims, a no-residency rule, and costing the same monthly amount, was announced. In May 2009, Linden Lab announced they were "grandfathering" Openspace sims (now rebranded as "Homesteads"), after a protracted protest movement caused a major amount of negative publicity and funded potential litigation.
Sex Some media attention has been given to sexual activity involving avatars with a childlike appearance. The United Kingdom and Germany are among the countries investigating new laws
to combat simulated child pornography. The USA has attempted to pass several laws forbidding simulated child pornography; however, each one has been struck down by the US Supreme Court as an infringement on the First Amendment right to free speech. As of May 2007, two such countries, Germany and Belgium, have launched a police investigation into age of consent-related offenses in
Second Life (including both trading of non-virtual photography and involuntary virtual sexual activity with childlike avatars by means of virtual
identity theft). Linden Lab responded by issuing a statement that any "depiction of sexual or lewd acts involving minors" was a bannable offence. In France, a conservative family union,
Familles de France, sued Linden Lab in June 2007, alleging that
Second Life gave minors access to sexual content, including
bondage,
zoophilia,
scatophilia, and to gambling, and advertisements for alcohol, drugs and tobacco. Linden Lab pointed out that the virtual world is not meant for children (people under the age of 18) because of the mature content and interactions within
Second Life. However, minors aged between 13 and 17 can access
Second Life, but they will be restricted to what they can see or do based on age. The
Second Life world is split into sections/worlds and each one is given a maturity rating similar to films: General, Moderate and Adult. Minors aged 13–17 can access areas with a General Rating only.
Second Life Main Grid regions are rated either "General", "Moderate", or "Adult" (previously "PG", "Mature", or "Adult"). Builds, textures, actions, animations, chat, or businesses that are of an adult nature are regulated by the
Second Life Terms of Service to only occur in simulators with a Moderate or Adult rating. General rated sims exist as an alternative for residents who do not wish to reside in areas where adult-oriented activities and businesses are permitted. Linden Lab has created an Adult rated "mainland" continent named Zindra in response to its other "mainland" continents being mostly General. Regardless of what rights and licences are given, Linden Lab takes no responsibility for the outcome of any dispute between users or the server regarding content. Section 10.2 states; "you release Linden Lab (and its officers, directors, shareholders, agents, subsidiaries, and employees) from claims, demands, losses, liabilities and damages (actual and consequential) of every kind nature, known and unknown, arising out of or in any way connected with any dispute you have or claim to have with one or more users, including whether or not Linden Lab becomes involved in any resolution or attempted resolution of the dispute". Section 10.3 repeats a similar passage but regarding the responsibility of Linden Lab during any data or technical fault. == Litigation ==