FTC Order Prohibits NGL Labs and Founders from Offering Anonymous Messaging Apps to Minors, Ends Deceptive AI Content Moderation Claims
The Federal Trade Commission (FTC) and the Los Angeles District Attorney’s Office are taking action against NGL Labs, LLC and its co-founders, Raj Vir and Joao Figueiredo, for numerous legal violations involving their anonymous messaging app, “NGL: ask me anything.” The app was unfairly marketed to children and teens, used fake messages to boost engagement, tricked users into subscribing to paid services, and failed to obtain consent for recurring charges. The defendants will pay $5 million to settle the lawsuit and are banned from offering their app to anyone under 18.
The FTC and Los Angeles DA’s Office allege that NGL Labs not only targeted children and teens but also falsely claimed that their AI content moderation could filter out cyberbullying and harmful messages. Additionally, the defendants sent fake messages that seemed to come from real users and misled people into purchasing subscriptions by falsely promising to reveal the identities of message senders.
NGL marketed its app to kids and teens despite knowing that it was exposing them to cyberbullying and harassment,” said FTC Chair Lina M. Khan. “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.”
“The consequences of these actions can be severe. The anonymity provided by the app can facilitate rampant cyberbullying among teens, causing untold harm to our young people,” Los Angeles District Attorney George Gascón said. “We cannot tolerate such behavior, nor can we allow companies to profit at the expense of our children’s safety and well-being. Today’s charges send a clear message that deceptive practices and targeting vulnerable populations will not be tolerated.”
California-based NGL was launched in 2021 as an anonymous 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.
In their complaint, however, the FTC and the Los Angeles DA’s office allege that NGL and its operators actively marketed their service to kids despite being aware of the harms from similar services; made false claims about their AI content moderation program; deceived users with fake messages and other tactics aimed at driving up the number of paid users; failed to clearly disclose and obtain consent for recurring charges for its NGL Pro service; and violated the Children’s Online Privacy Protection Act Rule (COPPA Rule).
Source: FTC
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