In a groundbreaking move, the Federal Trade Commission and the Los Angeles District Attorney’s Office have taken a firm stance against cyberbullying and threats aimed at children and teenagers by banning a controversial anonymous messaging app, NGL, from serving kids under 18. This move is part of a wider crackdown on social media companies and businesses that mishandle consumer data or make false claims about artificial intelligence.
As part of the settlement announced on Tuesday, NGL will pay $5 million for its “reckless disregard for kids’ safety” and must implement an age gate to block users under 18. The app allegedly preyed on young users, deceiving them into subscribing to premium services by sending fake messages promising to reveal the sender after payment. However, when users paid, the app failed to provide the promised information, instead offering vague hints.
The app’s co-founders, including Joao Figueiredo, have been called out for their involvement in these deceptive practices. Despite disputing the allegations, NGL has agreed to the terms of the settlement, which still needs approval from the US District Court for the Central District of California.
FTC Commissioner Andrew Ferguson described this action as a “novel” use of the agency’s legal powers, emphasizing that the app exploited vulnerable teens for profit. The FTC credited the consumer advocacy group Fairplay and social media critic Kristen Bride for their assistance in the investigation, highlighting the dangers of anonymous messaging apps for young users.
With this move, the FTC is sending a clear message to companies that exploit teenagers for profit, and advocates like Bride are applauding the efforts to protect vulnerable youth from cyberbullying and deceptive practices.