Los Angeles, California – Federal regulators have taken a significant step in protecting children online by banning a digital platform from catering to users under 18. The app, known as NGL, faced accusations of misleading users about its artificial intelligence capabilities to address cyberbullying.
NGL, a popular app among children and teens, aggressively marketed itself to young users despite known risks of bullying on the anonymous messaging platform. The Federal Trade Commission, along with the Los Angeles District Attorney’s Office, revealed in a complaint that NGL tricked users into paying for subscriptions through computer-generated messages posing as real people.
Executive’s dismissive response to user complaints about the deceptive marketing tactics prompted regulatory action against NGL. As a result, the company agreed to a $5 million settlement and to cease marketing to children and teenagers. Additionally, the lawsuit alleged that NGL violated children’s privacy laws by collecting data from individuals under 13 without parental consent.
The settlement reflects a milestone in the government’s efforts to address concerns regarding tech platforms exposing children to harmful content for profit. Chair Lina Khan of the FTC, who has increased scrutiny of the tech sector since taking office in 2021, emphasized the agency’s commitment to cracking down on businesses exploiting children.
In a statement, NGL’s co-founder, Joao Figueiredo, acknowledged the cooperation with the FTC’s investigation. He expressed a commitment to improving the app following the resolution. Despite denying some of the allegations about the age of its user base, NGL aims to enhance its policies and procedures to comply with regulations.
NGL’s rapid rise in popularity, amassing over 200 million users, underscores the importance of addressing the safety and privacy of young individuals online. The case brought attention to the need for stricter enforcement of laws protecting children from harmful activities on digital platforms.
The bipartisan support for the settlement, approved unanimously by the FTC, signals a shared concern for children’s online safety. While some question the effectiveness of age verification measures and restrictions on tech companies, the settlement sets a precedent for holding businesses accountable for their obligations to children and teens.