image credit: ngl
In an unprecedented and aggressive move against “rampant cyberbullying and threats against children and teens” on a controversial anonymous messaging app, the Federal Trade Commission and Los Angeles District Attorney’s Office banned it from serving kids under 18.
The FTC’s targeted restriction is the latest in a crackdown on social media sites, data brokers, and other enterprises that mishandle customer data or oversell artificial intelligence.
In a complaint and settlement announced Tuesday, FTC Chair Lina Khan said the app being penalized, NGL, will pay $5 million for “reckless disregard for kids’ safety.” The software must also block under-18 users via an age barrier. The regulators noted that the app posed as a “safe space” for kids but preyed on them.
The action clearly names the company’s co-founders, demonstrating FTC pledges to hold leaders accountable for corporate malfeasance.
The allegation said NGL had millions of downloads. The Internet acronym NGL means “not going to lie.”
The lawsuit claimed that NGL intentionally marketed to young users and violated federal data protection regulations, while its staff derided paying consumers as “suckers” and profited from their stupidity.
NGL co-founder Joao Figueiredo said the company spent nearly two years complying with the FTC’s inquiry but opposes the agency’s findings, which the five-member commission unanimously endorsed.
Comment Template