FTC Intervenes: App 'NGL' Convicted for Violating Child Protection Laws

The Federal Trade Commission (FTC) has, for the first time, banned an online service from being used by minors due to violations of child privacy and consumer protection laws. The anonymous messaging app NGL was at the center of these actions. The FTC stated that the app exposed children and adolescents to significant danger and caused them harm. NGL Labs, the company behind the NGL app, aggressively marketed it as a 'safe space for teens' with robust moderation practices. However, contrary to these promises, the app's users were exposed to cyberbullying and other dangers, as emphasized by the FTC. NGL, a common abbreviation for 'not gonna lie,' agreed to a settlement payment of $4.5 million, which is to be paid to the affected consumers. Additionally, a civil penalty of $500,000 was imposed in collaboration with the Los Angeles District Attorney. Lawmakers and regulatory authorities are increasingly concerned about the safety and well-being of children online. The recent call from the Surgeon General for a health warning regarding social media for children and adolescents reinforces these efforts. It is expected that corresponding legislation, known as the Kids Online Safety Act, will soon be passed to protect children from harmful content and to implement more robust data privacy standards. The FTC is intensifying its efforts to protect children online by closely scrutinizing apps and services that violate child privacy and consumer protection laws. In the case of NGL, the agency identified a series of deceptive practices. The company, based in Los Angeles and which launched the app in 2021, falsely claimed to use artificial intelligence to prevent bullying and other harmful activities.