NGL Pro, a paid subscription service, can also reveal hints about who sent the messages, and further payment may result in the sender’s username. In 2022, users found out that the app was generating messages from fake peers for users without enough engagement, and NGL quietly updated their app to change this feature.

Alongside Fairplay, activist Kristin Bride alleged that cyberbullying and deceptive marketing were key parts of the NGL app, putting minors at risk of harassment. Bride had already sued similar apps, YOLO and LMK back in 2021 after her 16 year-old son had committed suicide after facing anonymous cyberbullying. Snapchat later suspended the apps.

In their complaint, the FTC and Los Angeles DA’s Office cite that NGL allegedly uses ‘fake messages to drive engagement with the NGL app’. These fake messages would trick users into signing up for the paid subscriptions by falsely promising that it would reveal the identity of the senders.

Marketing gone wrong

NGL marketed the app as a way for teens to make friends online ‘in a fun and safe way’ and claimed to use ‘Hive Moderation complex AI algorithms’ to combat cyberbullying, however, these claims have been proven to be false.

NGL also failed to disclose terms and obtain consent for recurring charges on NGL Pro. The app claims that the identities of senders will be revealed, but only hints were provided, such as the type of device the message was sent from, time and in some cases location. Some of these hints were even proved to be false. All of this violates the Restore Online Shoppers’ Confidence Act (ROSCA).

Furthermore, NGL aggressively marketed its app to teens and children. Figueiredo said the company’s product led to the use of high school kids to grow their users, and that the best way was to ‘reach out on [Instagram] by finding popular girls on high school cheer [Instagram] pages.’ Even with the knowledge that these types of apps are known to be harmful to children, as YOLO and LMK were proven to be.

Now, not only are NGL and its co-founders banned from marketing anonymous messaging apps to kids and teens under 18, but it also requires them to pay $4.5mn dollars to compensate its consumers. They also need to pay a $500,000 civil penalty to the LA DA’s office.

NGL is now required to implement a neutral age gate that prevents new and current users from accessing the app if they are minors, as well as delete all personal information of users under the age of 13 unless they obtain parental consent. NGL is also prohibited from sending misrepresenting messages and making false claims about their AI technologies.