Federal Trade Commission Bans NGL App from Serving Users Under 18
In a landmark decision, the Federal Trade Commission (FTC) has taken unprecedented action by banning an app from serving users under the age of 18. The agency announced on Tuesday that it’s prohibiting NGL, an anonymous social app, from marketing or offering its app to minors. As part of the settlement, NGL will pay $5 million to settle the lawsuit.
The Rise and Fall of NGL
Launched in 2021, NGL quickly rose to the top of the app store based on its unique premise. The app allowed users to post links to their social accounts that friends could click on to send anonymous questions. However, beneath its seemingly innocuous surface, the app was hiding a web of deceit and manipulation.
FTC’s Allegations Against NGL
The FTC and the Los Angeles DA’s office allege that the app and its co-founders not only marketed NGL to minors but also falsely claimed that its AI content moderation system filtered out harmful messages and cyberbullying. The complaint also alleges that NGL sent fake questions that appeared to come from real people to trick users into paying its $9.99 monthly subscription to get hints about who sent the messages.
The Bait-and-Switch Tactic
TechCrunch discovered this tactic back in 2022, when they shared an NGL link inviting questions in an Instagram Story. Just a few hours after posting the link, they received questions from half a dozen ‘people’ on NGL. However, no one had seen their link because it wasn’t live for more than a second.
FTC’s Settlement with NGL
As part of the settlement, NGL has to implement an age gate that prevents new and current users from accessing the app if they are under 18. The company is also prohibited from misrepresenting the sender of messages and required to disclose information about recurring charges. Additionally, NGL is prohibited from misrepresenting the capabilities of its AI content moderation system’s ability to filter out cyberbullying.
NGL’s Response
In a statement to TechCrunch, NGL co-founder Joao Figueiredo said: "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." While Figueiredo acknowledged that the company was required to implement age-gating procedures, he expressed confidence that these measures would improve policies generally.
The Significance of the FTC’s Action
This settlement represents one of the most significant actions taken by the FTC under Chair Lina Khan with the aim of preventing social media services from profiting from practices that have the potential to harm children. The agency has made it clear that it will continue to crack down on businesses that exploit kids for profit.
A Pattern of Behavior
The allegations against NGL are just the tip of the iceberg. According to the complaint, the company’s executives laughed off consumer complaints, dismissing users as ‘suckers.’ This brazen disregard for user safety is a pattern of behavior that has been repeated by other companies in the past.
What the Future Holds
As the FTC continues to hold companies accountable for their actions, it’s clear that the future of social media and online interactions will be shaped by a renewed focus on user safety. The ban on NGL serves as a warning to other companies: if you engage in deceptive practices and prioritize profits over people, you will face severe consequences.
What You Can Do
If you’re concerned about your child’s online safety or have experienced similar issues with social media apps, there are steps you can take:
- Educate yourself on online safety best practices
- Install reputable parental control software to monitor and limit your child’s online activity
- Report suspicious behavior to the relevant authorities
- Support companies that prioritize user safety and transparency
By working together, we can create a safer and more transparent online environment for everyone.
