The move against the app NGL by the Federal Trade Commission was the first time the agency barred an online service from hosting minors.
The Federal Trade Commission on Tuesday barred an online service for the first time from serving users under the age of 18, saying the app had violated child privacy and consumer protection laws and had harmed children and teenagers.
The F.T.C. said it had reached a settlement with the maker of the anonymous messaging app NGL over privacy and consumer protection violations. NGL Labs, the maker of NGL, had aggressively marketed the app as a “safe space for teens” with robust moderation practices, but instead, it exposed users to cyberbullying and other harms, the agency said.
NGL, a common acronym used for the expression “not gonna lie,” agreed to a $4.5 million settlement to pay consumers affected by the company’s practices. The settlement was jointly reached with the Los Angeles District Attorney, who imposed an additional $500,000 civil penalty on NGL.
Lawmakers and regulators have become increasingly concerned about the safety and well-being of children online. Last month, the Surgeon General called for a health warning label on social media for teenagers and children, which would take an act of Congress to become mandated. Lawmakers are also wrangling over the Kids Online Safety Act, a bill that would force social media, messaging and other sites to protect children from harmful content and make the most robust privacy setting the default for young users.
The F.T.C. said it was pushing to protect children online by examining apps and services that violated child privacy and consumer protection laws.
In NGL’s case, the agency said it found a host of deceptive practices, according to the settlement. The company, based in Los Angeles, released NGL in 2021, and falsely claimed in its marketing to young users that its service used artificial intelligence tools to prevent bullying and other harmful activities online, the F.T.C. said.