FTC Bans Messaging App NGL From Serving Minors

Federal regulators banned a digital messaging platform from serving users under 18 for collecting data from kids without parental consent and exaggerating its ability to use artificial intelligence to curb cyberbullying.

NGL, an anonymous messaging app, with a name that stands for "not gonna lie," and co-founders Raj Vir and Joao Figueiredo agreed to pay $5 million and stop marketing to kids and teenagers to settle a lawsuit brought by the Federal Trade Commission and the Los Angeles District Attorney's Office, according to an FTC press release Tuesday.

In the complaint, the FTC and Los Angeles district attorney allege that NGL sent fake messages that appeared to come from real people and tricked users into signing up for a paid subscription costing as much as $9.99 a week by falsely promising that doing so would reveal the identity of the senders of messages.

"Instead, paying users only received useless 'hints' such as the time the message was sent, whether the sender had an Android or iPhone device, and the sender's general location," the FTC said. "NGL's bait-and-switch tactic prompted many consumers to complain, which NGL executives laughed off, dismissing such users as 'suckers.'"

FTC Chair Lina Khan said NGL is paying for its "reckless disregard for kids' safety."

"NGL marketed its app to kids and teens despite knowing that it was exposing them to cyberbullying and harassment," Khan said in a statement. "In light of NGL's reckless disregard for kids' safety, the FTC's order would ban NGL from marketing or offering its app to those under 18. We will keep cracking down on businesses that unlawfully exploit kids for profit."

Haley Hinkle, policy counsel for child safety group Fairplay, applauded the FTC's decision in a statement issued to Newsmax on Tuesday: "Big Tech does not have carte blanche to offer children products and features that are demonstrably harmful and deceptive. ... We urge all anonymous peer messaging platforms to take notice."

Launched in 2021, California-based NGL was promoted as a messaging service that allows people to receive anonymous messages from their friends and social media followers.

NGL and its operators marketed the app as a "safe space for teens" and claimed it uses "world class AI content moderation" including "deep learning and pattern matching algorithms" to combat cyberbullying and other harms, the FTC said.

To increase business in 2022, NGL began automatically sending consumers fake computer-generated messages that appeared to be from real people.

In March, NGL issued a press release saying it had surpassed 200 million users.

In October, Fairplay and parent activist Kristin Bride filed a complaint urging the FTC to investigate NGL Labs, The Washington Post reported.

Bride's 16-year old son Carson died by suicide in 2020 after facing cyberbullying on anonymous messaging services Yolo and LMK, the Post added.