Child safety groups, such as Fairplay, and parent activist Kristin Bride played a significant role in the NGL case34. They filed a complaint urging the FTC to investigate allegations that NGL Labs illegally marketed to children using unfair and deceptive trade practices3. The FTC acknowledged receiving "invaluable assistance" from these groups in the case, which resulted in a settlement requiring NGL to stop marketing to kids and pay a $5 million fine.
The FTC's lawsuit against NGL resulted in a settlement where the company agreed to pay $5 million and stop marketing to kids and teens2. NGL was accused of exaggerating its AI's ability to curb cyberbullying and violating children's privacy laws by collecting data from kids under 13 without parental consent. The settlement marks a significant step in the federal government's efforts to address tech platforms exposing kids to harmful content and profiting from it.
The FTC banned NGL for users under 18 due to allegations of the app exaggerating its ability to use AI to curb cyberbullying. The app was also accused of tricking users into paying for subscriptions by sending computer-generated messages appearing to be from real people. Additionally, NGL violated children's privacy laws by collecting data from kids under 13 without parental consent.