FTC proposes $5M penalty for NGL Labs, founders over COPPA violations

Messaging apps

The Federal Trade Commission (FTC) ordered anonymous messaging app creator NGL Labs and its two founders to pay $5 million for unfairly marketing to children and falsely claiming artificial intelligence (AI) filtered out bullying messages and threats.

The FTC additionally ordered FTG to stop marketing to children under 18, the agency announced in a press release Tuesday.

Created in 2021 by Raj Vir and Joao Figueiredo, the “NGL: ask me anything” app was marketed as a “safe space for teens” and allowed users to receive anonymous messages, including candid and slanderous ones, from friends and contacts. The company engaged in aggressive, coercive marketing tactics toward children, the FTC alleged.

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