In a landmark decision, the Federal Trade Commission (“FTC”) and the Los Angeles District Attorney's Office have stepped in to address serious violations by NGL Labs, LLC, and its founders, Raj Vir and Joao Figueiredo. The focus of the action is their anonymous messaging app, "NGL: ask me anything," which has been accused of unfairly marketing to children and teens, leading to a settlement of $5 million. Moving forward, NGL Labs will be banned from offering their app to anyone under 18.
The complaint highlights a range of deceptive practices, including false claims about the app’s AI content moderation capabilities, which purportedly filtered out harmful messages. In reality, NGL Labs is accused of sending fake messages that appeared to come from real users, enticing individuals into subscribing to a paid service with misleading promises about revealing message senders' identities.
Major Action Taken Against NGL Labs for Deceptive Practices Targeting Teens
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