FTC Bans NGL from Serving Minors, Imposes $5M Fine in Landmark Decision

Jul 9, 2024, 04:35 PM

The FTC has issued a landmark order banning NGL Labs and its founders from offering their anonymous messaging app to users under 18. This decision, announced on Tuesday, marks the first time federal regulators have prohibited a digital platform from serving minors. The FTC accused NGL of exaggerating its ability to use artificial intelligence to curb cyberbullying and failing to stop rampant cyberbullying on its platform. Additionally, NGL was found to have violated child privacy and consumer protection laws. As part of the settlement, NGL has agreed to pay $5 million and cease marketing to children and teens. The FTC's action addresses gaps in existing laws protecting minors online, beyond what COPPA covers.