FTC Takes Action Against Sendit App for Alleged Violations
In a significant move, the Federal Trade Commission (FTC) has initiated legal proceedings against the operator of the Sendit messaging app, citing serious allegations of unlawful data collection from minors and deceptive subscription practices. The complaint, filed by the Department of Justice, claims that Sendit failed to notify parents regarding the collection of personal information from children under the age of 13, including sensitive data such as phone numbers, birthdates, and usernames linked to popular social media platforms like Snapchat, Instagram, and TikTok.
At the heart of the issue is the Children’s Online Privacy Protection Rule (COPPA), which mandates that online service providers inform parents about the data they collect from children and secure verifiable consent before proceeding. The civil complaint specifically targets Hunter Rice, the CEO of Sendit’s parent company, Iconic Hearts Holdings, Inc.
The FTC’s allegations extend beyond data collection, as it asserts that Sendit engaged in manipulative tactics to entice users into purchasing subscriptions. According to the agency, the app misled users by sending messages purportedly from fictitious individuals, creating an illusion of interaction that could only be accessed through a paid subscription. Furthermore, the terms of the subscription plan were allegedly not disclosed, leaving users in the dark about the costs involved.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, expressed concern over the situation, stating, “Sendit’s operator and CEO were well aware that many of its users were under the age of 13 and still failed to comply with COPPA. At the same time, they manipulated many users, including children, into signing up for their weekly subscription service by sending fake messages and promising to reveal the identity of message senders but failing to deliver.”
The FTC noted that Iconic Hearts was aware of the age of its users, having received numerous complaints from parents and through self-reported data. In 2022 alone, approximately 116,000 users indicated they were under 13 years old.
In a bid to entice users into purchasing a “Diamond Membership” priced at up to .99 per week, the app allegedly sent provocative messages, such as “have you done drugs?” or “would you ever get with me?” Users were required to subscribe to uncover the identities of the message senders, only to be met with misleading information regarding non-existent individuals. In instances where the messages originated from real users, the app reportedly provided minimal information, such as location or phone type, failing to disclose the sender’s identity despite prior assurances.
In addition to COPPA violations, the FTC’s complaint asserts that Iconic Hearts breached the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA). As the situation unfolds, the implications of these allegations could resonate widely within the tech industry, particularly among platforms catering to younger audiences.
