The Federal Trade Commission has made history by prohibiting an app from catering to users under the age of 18. In an announcement on Tuesday, the agency revealed that NGL, an anonymous social app, is banned from promoting or providing its services to minors, with NGL agreeing to pay $5 million to settle the lawsuit.
NGL gained popularity in 2021 by offering a unique feature that allowed users to share links to their social media profiles, enabling friends to anonymously submit questions.
Accusations from the FTC and the Los Angeles DA’s office state that NGL and its founders targeted minors in their marketing efforts and made false claims about the effectiveness of their AI content moderation system in filtering out harmful content and cyberbullying.
Additionally, the complaint alleges that NGL deceived users by sending fake questions designed to entice them into paying a $9.99 monthly subscription for hints on the sender’s identity.
In 2022, TechCrunch observed NGL’s deceptive practices firsthand when an interaction on Instagram revealed the use of fake questions sent by the app. When users failed to engage with the platform naturally, NGL resorted to generating fake messages, leading to misleading subscription offers.
The FTC accuses NGL of engaging in deceitful practices, including failing to adequately disclose charges for its services and violating the COPPA Rule by targeting children without parental consent.
FTC Chair Lina M. Khan expressed concern over NGL’s disregard for child safety, leading to the ban on marketing its app to individuals under 18. The settlement requires NGL to enforce an age gate to restrict underage access, clarify message sender identity, and accurately disclose subscription details.
In response to the settlement, NGL co-founder Joao Figueiredo acknowledged areas for improvement and expressed commitment to enhancing user safety and compliance with regulations.
