Los Angeles District Attorney’s Office

The lawsuit from the FTC and the Los Angeles District Attorney’s Office revealed that NGL Labs marketed the NGL app to children and teens, misled users into purchasing premium accounts, and made false claims about their AI moderation tool. The app sent fake messages to users to encourage them to pay for premium services, but no names were revealed after purchase. The FTC banned NGL from serving minors, the first of its kind, potentially leading to further regulations. The app claims to have at least 200 million global downloads. FTC chair Lina Khan aims to regulate companies using AI without mass exploitation of users. Los Angeles District Attorney George Gascón emphasized the severe consequences of cyberbullying among teens facilitated by the app.