FTC Bans NGL App from Serving Users Under 18
Federal regulators have taken a significant step by banning the digital platform NGL from serving users under 18. The app, known for its aggressive marketing to young users, has been accused of exaggerating its ability to use artificial intelligence to curb cyberbullying, leading to a groundbreaking settlement.
The Federal Trade Commission and the Los Angeles District Attorney’s Office alleged in a complaint that NGL tricked users into paying for subscriptions by sending computer-generated messages appearing to be from real people. The company offered a service for as much as .99 a week to find out the real identity of the sender, but users only received “hints” of those identities.
After receiving complaints about this tactic, executives at NGL reportedly dismissed the concerns of users, referring to them as “suckers.” In response to the allegations, NGL has agreed to pay million and cease marketing to kids and teens.
The settlement highlights the government’s efforts to address concerns about tech platforms exposing children to harmful content for profit. FTC Chair Lina Khan emphasized the agency’s commitment to cracking down on businesses that exploit kids unlawfully.
NGL co-founder Joao Figueiredo stated that the company cooperated with the investigation and sees the resolution as an opportunity to improve. Despite disagreements on some allegations, NGL aims to enhance its policies and procedures moving forward.
The popularity of NGL has soared, with a user base exceeding 200 million. However, concerns have been raised about the platform’s impact on young users, particularly regarding cyberbullying. The settlement with the FTC requires NGL to implement age-gating measures and prevent misrepresentations about its filtering capabilities.
The bipartisan approval of the settlement underscores the bipartisan concern over children’s online safety. The FTC’s actions against NGL set a precedent for holding tech companies accountable for their obligations to kids and teens.
