App Developer NGL Labs Banned from Hosting Minors Due to Safety Concerns
California-based app developer NGL Labs has been banned from offering its anonymous messaging app to individuals under the age of 18 following allegations of numerous safety violations. The Federal Trade Commission (FTC) and the Los Angeles District Attorney’s Office filed a complaint against NGL Labs, accusing the company of actively marketing their service to children and teenagers and falsely claiming that their artificial intelligence (AI) content moderation program could filter out cyberbullying and other harmful messages. The FTC also claimed that NGL Labs failed to prevent rampant cyberbullying and threats against minors using their app, with one consumer even reporting that their friend had attempted suicide because of the NGL app.
The ban on NGL Labs is significant as it marks the first time federal regulators have taken such action against a digital platform hosting minors. In addition to the ban, NGL Labs has agreed to pay a $5 million settlement to the FTC and the Los Angeles District Attorney’s Office. The settlement includes $4.5 million to provide redress to consumers affected by the company’s practices and a $500,000 civil penalty to the Los Angeles DA’s office.
The allegations against NGL Labs include violations of the Children’s Online Privacy Protection Act Rule (COPPA), which requires apps and online services to inform parents about the personal information collected from users under 13 and obtain verifiable parental consent. The FTC claimed that NGL Labs did not obtain parental consent for users when required and failed to honor deletion requests from parents regarding their children’s personal data.
Furthermore, NGL Labs was accused of violating the FTC Act, which prohibits unfair or deceptive acts or practices in commerce, as well as the Restore Online Shoppers’ Confidence Act, which prohibits sellers from interpreting a customer’s rejection of a sales offer as acceptance. The company was also accused of violating California state laws related to unfair competition, deceptive advertising, and false statements in ads.
FTC Chair Lina M. Khan emphasized that the ban on NGL Labs was a result of the company’s “reckless disregard for kids’ safety.” Los Angeles District Attorney George Gascón echoed this sentiment, stating that anonymous apps like NGL can facilitate rampant cyberbullying among teens and that targeting vulnerable populations will not be tolerated.
In response to the allegations, NGL Labs stated that the safety and well-being of its community members are a top priority. The company also highlighted the difficulty of verifying the identity or username of message senders since their service is anonymous. NGL Labs expressed their intent to use the settlement agreement as an opportunity to improve their app and its policies.
As part of the settlement, NGL Labs has agreed to several restrictions. They will prohibit individuals under 18 from accessing the app and delete all personal data of users under 13. The company is also banned from making misrepresentations about their AI capabilities and their ability to filter out cyberbullying. Additionally, NGL Labs must obtain express informed consent from consumers before billing them for a negative option subscription and simplify the subscription process.
NGL Labs released their anonymous messaging app in 2021 and currently has millions of users worldwide. While the Google Store recommends parental guidance for users older than 12 years old, the recent ban on hosting minors highlights the need for increased safety measures within the app industry. By taking action against NGL Labs, federal regulators hope to send a clear message that prioritizing the safety of vulnerable populations is essential.
