- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Adrianne Appel2024-07-09T20:26:00
The Federal Trade Commission (FTC) ordered anonymous messaging app creator NGL Labs and its two founders to pay $5 million for unfairly marketing to children and falsely claiming artificial intelligence (AI) filtered out bullying messages and threats.
The FTC additionally ordered FTG to stop marketing to children under 18, the agency announced in a press release Tuesday.
Created in 2021 by Raj Vir and Joao Figueiredo, the “NGL: ask me anything” app was marketed as a “safe space for teens” and allowed users to receive anonymous messages, including candid and slanderous ones, from friends and contacts. The company engaged in aggressive, coercive marketing tactics toward children, the FTC alleged.
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The Federal Trade Commission took aim at the business models of some of the world’s largest companies, publishing a years-long study that decried technologies that have created “vast surveillance” networks that expose people to “a host of harms” and violate children’s privacy laws.
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Popular children’s mobile game developer Tilting Point Media agreed to pay $500,000 to settle allegations the company illegally collected children’s personal data, a violation under the California Consumer Privacy Act and a federal children’s privacy law.
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The Securities and Exchange Commission charged bankrupt fashion retailer Express with failing to disclose nearly $1 million in perks to a former chief executive, but did not levy a financial penalty thanks to its cooperation, the SEC said.
