F.T.C. Takes Action Against NGL App for Violating Child Privacy Laws

F.T.C. Settlement with NGL App Maker

The Federal Trade Commission (F.T.C.) announced on Tuesday that it has taken action against an online service, NGL app, for violating child privacy and consumer protection laws. This marks the first time the F.T.C. has barred an app from serving users under the age of 18 due to these violations.

The F.T.C. found that NGL, developed by NGL Labs, was marketed as a “safe space for teens” with strong moderation practices but instead exposed users to cyberbullying and other harms. As a result, NGL Labs has agreed to a $4.5 million settlement to compensate affected consumers. Additionally, the Los Angeles District Attorney imposed a $500,000 civil penalty on NGL.

Concerns about the safety of children online have been growing, leading to calls for more stringent regulations. The Surgeon General recently proposed a health warning label for social media targeting teenagers and children, which would require congressional approval. Lawmakers are also debating the Kids Online Safety Act, aiming to enhance protections for young users on various online platforms.

The F.T.C. emphasized its commitment to safeguarding children online by investigating apps and services that breach child privacy and consumer protection laws. In the case of NGL, the agency discovered deceptive practices, including false claims about using artificial intelligence tools to prevent harmful activities online, as stated in the settlement.