I write frequently about settlements the FTC has made with companies it has accused of wrongdoing, and the allegations in a recent lawsuit it filed with the Los Angeles District Attorney are particularly disturbing.
For the first time, the FTC has banned anonymous messaging apps from hosting users under the age of 18.
The “NGL: ask me anything app” was released in 2021 and allows users to receive anonymous messages from friends and social media followers.
“NGL” is a social media abbreviation that stands for “Don't Lie.” Users typically post a link to the NGL inbox on their Instagram accounts, inviting others to send them questions or comments anonymously.
NGL promoted the app as a “safe place for teens” and claimed it uses “world-class AI content moderation” to combat cyberbullying and other harms associated with similar products.
Users who responded to the prompts posted on NGL were met with ads encouraging them to purchase the NGL Pro service, which can cost as much as $9.99 per week, in order to verify the sender's identity.
These are illegal acts committed by the company.
The FTC and the Los Angeles District Attorney's Office charged that NGL violated numerous laws by:
- It actively promotes similar services to children despite being aware of the harm they cause, and families have sued other apps after children committed suicide after being bullied.
- Falsely claiming that its AI content moderation program filters out cyberbullying and other harmful messages. NBC News tested the app in 2022 and found that it filtered out “KYS,” which means “suicide,” but not more common bullying terms like “everyone hates you.”
- They generate interest in the app by sending fake messages that appear to come from real people, such as “I know what you did” and “Are you straight?”
- They tricked users into signing up for paid subscriptions to NGL Pro with false promises to reveal the identities of message senders, but instead gave them only useless hints like the sender's general location. NGL executives dismissed the complaining consumers as “idiots.” Many users were unaware they were signing up to pay a recurring weekly fee.
- Have not obtained verifiable parental consent to collect and use data from a child under 13. Apps and other online services are required to do so under the Children's Online Privacy Protection Act (COPPA).
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NGL ordered to pay multi-million dollar fines
“NGL sold apps to children and teens knowingly exposing them to the risks of cyberbullying and harassment,” FTC Chairman Lina Khan said. “Given NGL's reckless disregard for children's safety, our order prohibits NGL from selling or offering its apps to children under 18. We will continue to crack down on companies that illegally exploit children for profit.”
The settlement with the FTC and the Los Angeles District Attorney's Office requires NGL to pay $5 million in restitution to customers and a civil penalty.
They also need to reform their practices to eliminate misrepresentations about their products, obtain informed consent for recurring payments, and make cancellations easier.
Most importantly, controls must be put in place to prevent anyone who identifies as under 18 from accessing the app.
Before letting your child use an app, try it out for yourself and read online reviews to see what other users think.
Randy Hutchinson is president and CEO of the Better Business Bureau of the Mid-South.