The Federal Trade Commission (FTC) has banned the anonymous social app NGL from marketing or offering its services to users under the age of 18. NGL will pay a $5 million settlement as part of the resolution.
The FTC and the Los Angeles District Attorney accused NGL of falsely claiming its AI moderation system filtered harmful content and sending fake messages to users.
Additionally, NGL allegedly tricked users into paying a $9.99 subscription by sending fake questions purportedly from real people.
NGL was found to have exposed minors to cyberbullying and violated the Children’s Online Privacy Protection Act (COPPA) by not properly informing parents about data collection.
FTC Chair Lina M. Khan criticized NGL for exploiting minors and emphasized the need for stricter enforcement to protect kids.
Under the settlement requirements, NGL must implement an age gate to prevent users under 18, disclose recurring charges, and accurately represent its AI moderation capabilities.
NGL co-founder Joao Figueiredo stated that the settlement was in their best interest and aimed to improve the app for users, although he disputed some allegations.
