Federal regulators have taken a significant step by banning the digital platform NGL from serving users under 18 due to allegations of exaggerating its artificial intelligence capabilities to combat cyberbullying. The app, popular among children and teens, allegedly lured young users into paying for subscriptions by sending fake computer-generated messages and offering services to uncover real identities at a high cost. Despite user complaints, company executives dismissed concerns and referred to users as “suckers.”
In response to the lawsuit, NGL has agreed to pay $5 million and cease marketing to children and teenagers, settling the claims of privacy law violations and deceptive trade practices. This landmark settlement highlights the federal government’s efforts to address the exposure of children to harmful content on tech platforms, particularly targeting vulnerable demographics. The involvement of Fairplay and parent activist Kristin Bride, who filed a complaint against NGL Labs last year, underscores the importance of holding tech companies accountable for their obligations to safeguard children and teens online.
The bipartisan support for the settlement, with a unanimous approval of 5-0 by the FTC commissioners, showcases the shared concern over children’s online safety in Washington. This action reflects a novel approach to enforcing children’s online safety regulations and sets a precedent for how tech companies will be held accountable for protecting young users from harmful activities online. Moreover, the settlement with NGL is part of broader efforts by the FTC to tighten regulations on children’s online privacy protection and prevent exploitation of vulnerable demographics by tech platforms.
