The new terms of the settlement — which are still subject to approval by a judge — mark the latest effort by the FTC to crack down on companies that violate children’s privacy or otherwise harm them. The commission has issued several complaints involving the Children’s Online Privacy Protection Act (COPPA), including against Fortnite-maker Epic Games, Microsoft’s Xbox and a Weight Watchers weight loss app marketed to children. But stopping a company from offering their app to children sets this solution apart.
NGL is an application where users can request anonymous messages or questions from peers. On its Google Play Store page, it encourages users to share their NGL link in their Instagram bio “To get even more messages.” The FTC and LA DA accused NGL and its two co-founders of tricking new users into signing up for the paid version of the service by sending fake messages that appeared to be from real people and falsely promising that payment would reveal identities. of senders. . But when users signed up for $9.99 a week, they were only given “hints” about the senders’ identities, the complaint alleges. NGL’s product manager reportedly wrote “Lol suckers” in a text with the company’s co-founders in response to a customer complaint that the paid version didn’t show who sent certain messages.
NGL also falsely claimed it could filter out cyberbullying and other harmful messages through artificial intelligence content moderation tools, according to the enforcers’ complaint. They allegedly marketed the app as a “fun but safe place” for “young people … to share their feelings without judgment from friends or social pressures” and disputed Apple’s suggestion that the app not be rated for individuals “12 +”. But in reality, according to the complaint, cyberbullying was “rampant” on the service, and the company allegedly received consumer complaints of self-harm and suicide attempts that users blamed on experiences on the NGL app.
The app also allegedly violated the COPPA Rule by failing to obtain parental consent for children under 13 on the service or honoring their requests to delete their children’s data. In addition to the age stipulation, NGL agreed to pay $5 million to settle the charges.
“After nearly two years of cooperating with the FTC’s investigation, we see this resolution as an opportunity to make NGL better than ever for our users, and we believe the settlement is in our best interests,” it said in a statement. NGL co-founder Joao Figueiredo. . “While we believe that many of the claims about the youth of our user base are factually incorrect, we anticipate that the agreed-upon age determination and other procedures will now provide guidance to others in our space and hopefully improve policies in general.”
Commissioners voted 5-0 to file the complaint and settlement order. But the two Republican commissioners made clear their belief that Section 5 of the FTC Act, which prohibits deceptive business practices, cannot necessarily be used against every anonymous messaging app marketed to children. In a joint statement, Republican Commissioner Andrew Ferguson wrote that he supports the complaint against NGL and believes the app’s “alleged conduct, designed to manipulate the vulnerable teenage psyche, was reprehensible and unjust.” But, he added, “it does not follow that Section 5 categorically prohibits the marketing of any anonymous messaging app to teenagers.” Republican Commissioner Melissa Holyoak joined the statement.
The Republican commissioners’ statement is significant at a time when states across the country are passing age-appropriate internet laws. The Supreme Court recently agreed to take up a case involving an age verification law in Texas. Ferguson warned that construing any law to flatly ban anonymous messaging services for minors “would raise serious constitutional concerns.” He added that there are “real benefits” to allowing teenagers anonymity online, including protecting them from the “crowd” of cancellation culture. He also said Holyoak “correctly notes that it can be used to encourage at-risk teenagers to seek help who would otherwise feel uncomfortable asking”.