FTC Bans NGL Apps for Users Under 18 Under Landmark Settlement

Federal regulators have moved to ban digital platform NGL from serving users under 18, accusing the app of misleading about its ability to combat cyberbullying. The settlement, reported by the Washington Post, marks the first time such a ban has been imposed on a digital platform by federal authorities.

NGL, an app widely used by children and teens, aggressively marketed its services to young users despite the inherent harassment risks associated with its anonymous messaging feature. According to a complaint filed by the Federal Trade Commission (FTC) and the Los Angeles District Attorney’s Office, app executives ignored users’ concerns about these risks, dismissing them as “suckers” and continuing its “bait and switch” tactics.

The complaint details how NGL tricked users into subscribing to the service by sending them computer-generated messages that appeared to come from real people. The messages urged users to pay up to $9.99 a week for the service, which supposedly revealed the real identities of the people behind the messages. However, those who subscribed to the service received only vague “tips,” often of questionable authenticity. The FTC and the District Attorney’s Office also accused NGL of violating children’s privacy laws by collecting data from users under 13 without parental consent.

In response to these allegations, NGL agreed to a $5 million settlement and to cease marketing to children and teens. The move is a significant step in the federal government’s efforts to address the potential harm that technology platforms pose to young users and to hold companies accountable for exploiting minors for profit.

FTC Chairwoman Lina Khan, who has stepped up scrutiny of the tech industry since her appointment in 2021, has stressed the importance of protecting children from unethical business practices. “We will continue to pursue companies that unlawfully exploit children for profit,” Khan said in the announcement.

Source: Washington Post