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NGL Labs

FTC Cracks Down On NGL Messaging App Over Alleged Stealth Marketing, AI Falsehoods
AppWizard
July 15, 2024

FTC Cracks Down On NGL Messaging App Over Alleged Stealth Marketing, AI Falsehoods

The Federal Trade Commission is taking action against NGL Labs, a California-based company, for unfairly marketing to minors, overstating its efforts to protect users from cyberbullying, sending fake messages to trick users into signing up for paid subscriptions, violating laws around collecting personal data of children under 13, and failing to comply with COPPA privacy protections.
Anonymous messaging app allegedly sent 'fake' messages, exposed kids to 'cyberbullying'
AppWizard
July 10, 2024

Anonymous messaging app allegedly sent ‘fake’ messages, exposed kids to ‘cyberbullying’

NGL Labs has settled with the Federal Trade Commission for a million dollars due to various law violations related to their anonymous messaging app, "NGL: ask me anything." The app was accused of sending fake messages to users, including intrusive questions and statements, in order to increase user engagement. As part of the settlement, NGL Labs is prohibited from marketing to individuals under the age of 18.
FTC Bans Popular Anonymous Messaging App NGL From Serving Minors In First-Of-Its-Kind Move
AppWizard
July 10, 2024

FTC Bans Popular Anonymous Messaging App NGL From Serving Minors In First-Of-Its-Kind Move

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.
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