The Federal Trade Commission (FTC) in the USA has imposed a $5 million fine on NGL Labs and its founders for violations related to their anonymous messaging app. The main charges involved deceptive marketing targeted at children and teenagers, and false claims about the app’s artificial intelligence capabilities in content moderation.
The FTC found that NGL Labs:
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generated fake messages to increase user engagement;
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misled users about the features of the paid version of the app;
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falsely claimed that AI effectively filters harmful content;
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collected personal data from children under 13 without parental consent.
In addition to the financial penalty, the FTC ordered NGL Labs to:
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stop offering the app to individuals under 18;
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implement an age verification system;
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delete personal data of users under 13 without parental consent;
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cease misleading claims about AI capabilities and the sources of messages.