The FTC Bans NGL App from Serving Users Under 18
The Federal Trade Commission has taken a significant step by prohibiting the anonymous messaging app NGL from catering to users under the age of 18. This marks the first time the agency has intervened to halt a digital platform from targeting minors.
The decision to ban NGL from hosting underage users came after the FTC and the Los Angeles District Attorney’s office filed a lawsuit against the app. The lawsuit alleged that NGL engaged in unfair marketing practices towards children and made false claims about its AI-powered content moderation system’s ability to prevent cyberbullying. Additionally, the app was accused of deceptive business practices in promoting its premium subscription plan, NGL Pro.
NGL Labs, the parent company of NGL, along with app co-founders Raj Vir and Joao Figueiredo, reached a settlement with the FTC and the DA’s office. As part of the agreement, the company and its founders will pay million and implement an age restriction on the app.
In response to the settlement, Figueiredo expressed optimism about the opportunity to enhance NGL for its users. He acknowledged the allegations made against the app but emphasized the commitment to improving policies moving forward.
The California-based messaging app, known for its anonymity feature, gained popularity among teenagers shortly after its launch in 2021. Despite positioning itself as a safe space for teens, reports surfaced about the app’s failure to effectively filter out offensive language and cyberbullying.
FTC Chair Lina M. Khan condemned NGL for marketing itself to minors while exposing them to harmful online behavior. The complaint also highlighted NGL’s violation of the Children’s Online Privacy Protection Act (COPPA) by failing to disclose information collection practices to users under 13.
Los Angeles DA George Gascón echoed similar sentiments, emphasizing the importance of holding companies accountable for deceptive practices that target vulnerable populations, especially children.
The complaint against NGL outlined various deceptive tactics employed by the app, including sending fake messages to drive engagement and prompting users to subscribe to NGL Pro for revealing anonymous message senders. The lawsuit described NGL Pro’s subscription model as a bait-and-switch tactic, misleading consumers about recurring charges.
As part of the settlement, a portion of the funds will be allocated for consumer redress, while a civil penalty will be paid to the Los Angeles DA’s office. The resolution aims to address the concerns raised by the FTC and the DA’s office, signaling a commitment to safeguarding online users, particularly minors.
