F.T.C. Bars Anonymous Messaging App From Serving Users Under Age 18
Why did the FTC bar the NGL app for users under 18?
The FTC barred the NGL app for users under 18 due to violations of child privacy and consumer protection laws. NGL Labs falsely claimed its app was a safe space for teens with robust moderation practices, but it exposed users to cyberbullying and other harms. The company agreed to a $5 million settlement and is banned from offering the app to anyone under 18.
What laws did the NGL app violate according to the FTC?
The NGL app violated the Children's Online Privacy Protection Act (COPPA) Rule, the Restore Online Shoppers' Confidence Act (ROSCA), and the California Business and Professions Code, according to the FTC. The app was also found to have unfairly marketed its service to children and teens, deceived users with fake messages, and failed to clearly disclose and obtain consent for recurring charges for its NGL Pro service.
How did NGL allegedly harm its users?
NGL allegedly harmed its users by exposing them to cyberbullying and other harmful messages, despite claiming to use AI content moderation to filter out such messages. The app also sent fake messages that appeared to come from real people to trick users into paying for the NGL Pro version, which cost up to $9.99 per week. Additionally, NGL violated the Children's Online Privacy Protection Act by collecting information from children under 13 without parental consent3.