I frequently write about FTC settlements with companies it accused of misdeeds. The allegations in a recent case brought jointly with the Los Angeles District Attorney are particularly disturbing. For the first time, the FTC has banned an anonymous messaging app from hosting users under the age of 18.

The “NGL: ask me anything app” was launched in 2021 and allows users to receive anonymous messages from their friends and social media followers. “NGL” is social media shorthand for “not gonna lie.” Users would typically post links to their NGL inbox on their Instagram accounts and invite others to send questions or comments about them anonymously. NGL marketed the app as a “safe space for teens” and claimed to use “world class AI content moderation” to combat the cyberbullying and other kinds of harm associated with similar products.

A user who received a reply to a prompt posted on NGL saw advertising promoting the purchase of the NGL Pro service to find out the identity of the sender. NGL Pro cost as much as $9.99 a week.

The FTC and Los Angeles DA accused NGL of violating a host of laws by:

• Actively marketing their service to kids despite being aware of the harms from similar services. Families have sued other apps saying their children committed suicide after being bullied on them.
• Falsely claiming its AI content moderation program filtered out cyberbullying and other harmful messages. NBC News tested the app in 2022 and found that “KYS,” which stands for “kill yourself,” was filtered out, but more routine bullying terms like “everyone hates you” weren’t.
• Sending fake messages that appeared to come from real people to generate more interest in the app, such as “I know what you did” and “are you straight?”
• Tricking users into signing up for their paid subscription to NGL Pro by falsely promising that it would reveal the identity of the senders of messages, when all they actually got were useless hints such as the sender’s general location. NGL executives dismissed consumers who complained as “suckers.” Many users were unaware they were signing up for a recurring weekly charge.
• Not getting verifiable consent from parents to collect and use the data of kids under 13. Apps and other online services are required to do so under the Children’s Online Privacy Protection Act (COPPA).

Lina Khan, the FTC Chair, said, “NGL marketed its app to kids and teens despite knowing that it was exposing them to cyberbullying and harassment. In light of NGL’s reckless disregard for kids’ safety, the FTC’s order would ban NGL from marketing or offering its app to those under 18. We will keep cracking down on businesses that unlawfully exploit kids for profit.”

The settlement with the FTC and Los Angeles DA requires NGL to pay $5 million in customer redress and a civil penalty. They also have to reform their practices to eliminate any misrepresentations about their products, get informed consent for recurring charges, and make cancellation simple. Most importantly, they have to institute controls to prevent anyone indicating they’re under the age of 18 from accessing the app.

Try out an app yourself before letting your kids access it. Read online reviews to see what other users say about it.