Federal Trade Commission Archives

AppWizard

December 20, 2025

Anonymous messaging app NGL was acquired by ‘earnphone’ startup Mode Mobile

NGL was acquired by Mode Mobile, a company that monetizes user engagement through advertisements. NGL gained popularity in late 2021 but faced controversy for fostering bullying and employing questionable growth hacking strategies, including sending automated misleading messages. The FTC banned NGL's availability to minors after a two-year investigation and fined the app million for deceptive practices. Following the acquisition, the remaining three employees of NGL will join Mode Mobile. Mode Mobile has developed the “EarnPhone,” which allows users to earn money through everyday activities but relies heavily on advertising revenue. The specific terms of the acquisition are undisclosed.

Tech Optimizer

December 7, 2025

FTC sends $15.3 million in refunds to Avast antivirus customers

The Federal Trade Commission (FTC) is distributing million to 103,152 consumers affected by misleading marketing practices related to Avast's antivirus software. This distribution began on December 2, 2025, as part of a settlement finalized in June 2024, which addressed allegations that Avast collected, stored, and sold users' browsing information without proper notice or consent. Consumers can receive payments via checks, PayPal, or Zelle, with specific timeframes for cashing or redeeming funds. Rust Consulting, Inc. is the refund administrator, and individuals are advised not to pay any fees or provide account information to file claims. The settlement also imposes restrictions on Avast, including a permanent ban on selling web browsing data for advertising and a requirement to obtain clear consent from users for any future data sales.

AppWizard

November 19, 2025

Meta Learns That Nothing Is a Monopoly If You Just Wait Long Enough

Judge James Boasberg ruled that Meta, the parent company of Facebook, Instagram, and WhatsApp, does not have an illegal monopoly in the social media market. The Federal Trade Commission (FTC) failed to prove that Meta currently holds monopoly power, despite its past dominance. The emergence of competitors like TikTok and YouTube has created significant competition for Meta. The judge noted that consumers are increasingly spending time on these alternative platforms, which contributes to Meta's need to invest heavily to stay relevant. This ruling is part of a broader trend among major tech companies successfully navigating antitrust challenges in rapidly changing markets.

AppWizard

October 30, 2025

CWA president urges regulators scrutinise EA Saudi deal

Claude Cummings Jr., president of the Communications Workers of America (CWA) union, has requested a thorough investigation by the Federal Trade Commission (FTC) and the Committee on Foreign Investment in the United States (CFIUS) regarding the proposed acquisition of Electronic Arts (EA) by a consortium of investors primarily funded by Saudi Arabia. He expressed concerns about job security for thousands in the gaming industry and the potential impact on market dynamics, urging regulators to evaluate how the acquisition could affect EA's market power and wage-setting authority. The acquisition would transition EA to private ownership under investors including the Saudi Public Investment Fund. The CWA previously supported the acquisition of Activision Blizzard by Microsoft after negotiating a labor neutrality agreement.

AppWizard

October 17, 2025

Saudi Arabia’s acquisition of Electronic Arts faces pushback from game developers, petition calls on FTC to ‘scrutinize this deal closely’

Saudi Arabia's Public Investment Fund, along with private equity firms, is acquiring Electronic Arts (EA) for a billion dollars, facing significant resistance from the United Videogame Workers-CWA union. The union has urged regulators to prioritize job protection, creative freedom, and accountability in decision-making. EA, with annual revenues of .5 billion and profits of billion, is not in distress, but concerns have been raised about potential layoffs, particularly at BioWare, a studio known for its progressive narrative approach. The union warned that job losses would be a choice made for investor profit rather than necessity. U.S. senators Richard Blumenthal and Elizabeth Warren have expressed concerns about national security risks related to the acquisition, but regulatory intervention seems unlikely due to a shift in the FTC's stance and the involvement of Jared Kushner in the deal. The union has initiated a petition to prompt regulatory examination of the acquisition.

AppWizard

October 1, 2025

FTC alleges messaging app violated child privacy law, duped users into subscriptions

The Federal Trade Commission (FTC) has filed a legal complaint against the operator of the Sendit messaging app for unlawful data collection from minors and deceptive subscription practices. The complaint, initiated by the Department of Justice, alleges that Sendit did not inform parents about collecting personal information from children under 13, including sensitive data linked to social media. The complaint targets Hunter Rice, CEO of Iconic Hearts Holdings, Inc., Sendit's parent company, for violating the Children’s Online Privacy Protection Rule (COPPA). The FTC claims Sendit used manipulative tactics to encourage subscription purchases, misleading users with messages from fictitious individuals to create an illusion of interaction. The app reportedly did not disclose subscription costs and sent provocative messages to entice users into a "Diamond Membership" priced at up to .99 per week. The FTC's allegations include violations of COPPA, the FTC Act, and the Restore Online Shoppers’ Confidence Act (ROSCA). It was noted that in 2022, about 116,000 users reported being under 13 years old, and Iconic Hearts was aware of this due to complaints from parents and self-reported data.

AppWizard

September 27, 2025

Kids growing up with ‘Minecraft’ and ‘Fortnite’ are particularly…

Concerns about the impact of video gaming on mental health include increased anxiety, depression, eye strain, and obesity. Certain popular games like Minecraft and Fortnite may expose children to gambling-related behaviors through features such as loot boxes, which can influence young minds and predispose them to gambling. Young men are particularly at risk due to the development of their prefrontal cortex, with a recent poll showing that 10% of men aged 18 to 30 exhibit signs of a gambling problem compared to 3% in the general population. The Entertainment Software Rating Board has introduced a warning label for games with gambling-like features, but critics argue this is insufficient. Epic Games settled with the Federal Trade Commission for million over allegations of deceptive practices related to loot boxes. Parents are advised to avoid normalizing gambling, monitor competitive behavior, watch for financial red flags, be vigilant about gaming habits, and observe changes in attitude in their children.

Winsage

September 12, 2025

FTC should investigate Microsoft after Ascension ransomware attack, senator says

A U.S. senator, Ron Wyden, has requested an investigation by the Federal Trade Commission (FTC) into Microsoft's role in a ransomware attack on Ascension Health, alleging "gross cybersecurity negligence." The attack, which occurred in 2024, involved hackers using a method called "Kerberoasting" to exploit Microsoft’s Active Directory server, taking advantage of the outdated RC4 encryption standard. Wyden criticized Microsoft for not making the more secure Advanced Encryption Standard (AES) the default option in Windows and for failing to adequately warn customers about vulnerabilities related to Kerberoasting. Microsoft acknowledged that RC4 is outdated but stated that disabling it could disrupt customer systems. The company plans to disable RC4 by default in new installations of Active Directory Domains using Windows Server 2025 by early 2026. Wyden noted that the ransomware attack originated from a malicious link clicked by a contractor while using Microsoft’s Bing, leading to malware installation and subsequent ransomware deployment across Ascension’s systems. The attack severely impacted Ascension's operations, forcing its 140 hospitals to revert to manual processes for weeks and compromising sensitive data of nearly 6 million individuals. Patients in Texas, Illinois, and Tennessee have filed class action lawsuits against Ascension due to the breach. The Black Basta ransomware gang has been implicated in the attack, although they have not claimed responsibility.

Winsage

September 12, 2025

Senator Wyden Urges FTC to Probe Microsoft for Ransomware-Linked Cybersecurity Negligence

U.S. Senator Ron Wyden has urged the Federal Trade Commission (FTC) to investigate Microsoft for "gross cybersecurity negligence" linked to ransomware attacks on critical U.S. infrastructure, particularly in healthcare. Wyden's concerns were highlighted in a letter to FTC Chairman Andrew Ferguson, referencing a ransomware attack on Ascension that compromised personal and medical information of approximately 5.6 million individuals. The breach was initiated by a contractor clicking a malicious link on Microsoft's Bing, leading to exploitation of insecure default settings in Microsoft software. Wyden criticized Microsoft's use of the outdated RC4 encryption technology, which is vulnerable to attacks, and noted that Microsoft's software does not enforce a minimum password length for privileged accounts. Microsoft plans to phase out support for RC4 and implement additional security measures in future updates. The scrutiny follows previous criticisms of Microsoft's cybersecurity practices, including a report from the U.S. Cyber Safety Review Board.

Winsage

September 12, 2025

Senator Wyden Urges FTC to Probe Microsoft for Ransomware-Linked Cybersecurity Negligence

U.S. Senator Ron Wyden has called on the Federal Trade Commission (FTC) to investigate Microsoft for "gross cybersecurity negligence" linked to ransomware attacks on U.S. healthcare networks. In a letter to FTC Chairman Andrew Ferguson, Wyden expressed concerns about Microsoft's cybersecurity practices and its dominant market position, which he believes pose a national security risk. He referenced a ransomware attack on the healthcare system Ascension that affected 5.6 million individuals, attributed to the Black Basta group, and noted that the breach was initiated by a contractor clicking a malicious link on Microsoft's Bing search engine. The attackers exploited insecure default settings in Microsoft software, using a method called Kerberoasting that targets the Kerberos authentication protocol. This method takes advantage of the outdated RC4 encryption technology, which Microsoft still supports. Wyden criticized Microsoft's lack of adequate warnings about the risks associated with RC4 and pointed out that the software does not enforce a minimum password length of 14 characters for privileged accounts. Microsoft plans to phase out RC4 in future updates, with new installations of Active Directory Domains using Windows Server 2025 set to have RC4 disabled by default starting in Q1 of 2026. Additionally, a report from the U.S. Cyber Safety Review Board highlighted preventable errors that allowed Chinese threat actors to compromise Microsoft Exchange Online mailboxes. Despite these cybersecurity issues, Microsoft continues to secure lucrative federal contracts.