FTC bans anonymous messaging app NGL from allowing users under 18

The Federal Trade Commission has banned the anonymous messaging app NGL from hosting users under 18, the first time it has ordered a digital platform to stop serving minors.

The Federal Trade Commission has banned the anonymous messaging app NGL from hosting users under 18, the first time it has ordered a digital platform to stop serving minors. 

The FTC and the Los Angeles County District Attorney’s office had alleged in a lawsuit that the app unfairly marketed to kids and falsely claimed that its artificial intelligence-powered content moderation system prevented cyberbullying. It also accused the app of engaging in deceptive business practices in marketing its premium subscription plan, NGL Pro.

NGL Labs, which owns NGL, and app co-founders Raj Vir and Joao Figueiredo settled the lawsuit Tuesday, the FTC and the DA's office said in a news release. In addition to implementing an age restriction, the company and its founders will pay $5 million as part of the settlement. 

“After nearly two years of cooperating with the FTC’s investigation, we view this resolution as an opportunity to make NGL better than ever for our users and we think the agreement is in our best interest,” Figueiredo said in an email statement. “While we believe many of the allegations around the youth of our user base are factually incorrect, we anticipate that the agreed upon age-gating and other procedures will now provide direction for others in our space, and hopefully improve policies generally.”

The California-based messaging app, the name of which riffs off the term “not gonna lie,” launched in 2021. It touted itself as “a fresh take on anonymity," allowing users to post questions on their social media platforms that would prompt followers to respond anonymously.

https://www.nbcnews.com/tech/tech-news/ftc-bans-anonymous-messaging-app-ngl-for-minors-rcna160897

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