The Fine and Ban

The Federal Trade Commission (FTC) has achieved a notable victory against deceptive practices within the social media app industry, albeit targeting a smaller player. Today, the FTC has declared that private messaging app NGL, popular among teen users since 2022, will face a hefty fine of $5 million. In addition, the app will be restricted from allowing individuals under 18 to access the platform, owing to allegations of misleading tactics and regulatory breaches.

NGL’s Features and Allegations

NGL is known for its unique feature that allows users to post anonymous questions on the platform, which respondents can answer without revealing their identities. However, the FTC uncovered deceptive practices by NGL, including faking responses and misleading subscription charges. Users who paid to unveil the senders of messages often found out that bots were behind those responses.

Inadequate Teen Protections

Furthermore, the FTC revealed that NGL failed to provide adequate safeguards for teenage users, despite claiming to have advanced AI content moderation capabilities. Instances of harmful language and cyberbullying on the app went unchecked, contradicting the platform’s promises of a safe environment for teens.

Regulatory Implications

This FTC action marks the first instance of a total ban on minors using a messaging app, setting a new standard for teen safety protocols in the industry. Additionally, the FTC is exploring stricter regulations on Meta’s handling of teen user data and aims to establish clearer guidelines regarding advertisements targeted at individuals under 13.

Industry-wide Impact

The repercussions of NGL’s deceptive practices extend beyond its individual users. The case has prompted the FTC to consider enhanced restrictions and standard practices for age verification in various messaging apps, highlighting the broader implications of ensuring transparency and safety in online platforms.