Penalty Amount
$4,500,000
The FTC settled with NGL for deceptively marketing its anonymous messaging app to children and teens, using fake messages to trick users into paid subscriptions without proper consent. The order banned marketing to users under 18 and required $4.5 million in refunds for unauthorized charges.
The order bans NGL from marketing anonymous messaging apps to children and teens under 18 and requires the payment of $4.5 million to refund unauthorized charges to users.
In-house legal teams should review all customer-facing agreements, particularly terms of service and subscription agreements for apps or services accessible to minors. Focus on clauses governing marketing practices (especially those targeting users under 18), consent mechanisms for recurring payments and subscriptions, age verification procedures, and refund policies for unauthorized or deceptive charges. Given the COPPA violation, any agreement involving the collection of personal information from children under 13 must include verifiable parental consent provisions. Changes may be needed to implement robust age-gating, separate consent flows for minor users, clear disclosure of subscription terms and cancellation policies, and a streamlined refund process for unauthorized transactions.
Entity
NGL
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/01/ftc-announces-refund-claims-process-ngl-users-affected-deceptive-tactics-unauthorized-charges
NGL
https://www.ftc.gov/NGL
ftc order will ban ngl labs its founders offering anonymous
https://www.ftc.gov/news-events/news/press-releases/2024/07/ftc-order-will-ban-ngl-labs-its-founders-offering-anonymous-messaging-apps-kids-under-18-halt
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"NGL customers"
"$4.5 million"
"Children's Online Privacy Protection Act (COPPA)"
"unfairly marketing the service to children and teens"
"failed to obtain consent for recurring charges"
"In July 2024"
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$1.9M
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