FTC v. NGL Labs
FTC v. NGL Labs — Anonymous AI Chatbot Children's App Settlement
FTC · United States v. NGL Labs, LLC, No. 2:24-cv-05753 (C.D. Cal. July 9, 2024)
- Status
- In effect
- Took effect
- July 14, 2024
- Applies to
- NGL Labs, LLC and similarly situated chatbot apps marketing to minors
The FTC and the Los Angeles DA settled with anonymous-messaging app NGL Labs for $5M in July 2024, alleging the company used fake AI-generated 'anonymous' messages to manipulate teen users into paying for premium features that wouldn't actually reveal sender identities. NGL is banned from marketing to under-18 users.
Who is protected: Minor users of anonymous-messaging apps
Legal detail
FTC v. NGL Labs, LLC, No. 2:24-cv-05753 (C.D. Cal., consent order July 9, 2024). FTC Act § 5 unfairness + deception, COPPA, ROSCA. $5M civil penalty; banned from offering NGL service to users under 18; required to delete all data collected from under-18 users; disclose use of AI-generated content as such.
Key facts
| Jurisdiction | FTC |
|---|---|
| Level | Federal |
| Strength | Moderate |
| Citation | United States v. NGL Labs, LLC, No. 2:24-cv-05753 (C.D. Cal. July 9, 2024) |
| Topics | children's online safety · consumer protection · AI disclosure and transparency |
| Agency page | NGL Banned from Offering Anonymous Messaging to Minors — FTC press release |
More AI rules in FTC
- FTC v. Rite Aid · In effect
- FTC v. Amazon (Ring) · In effect
- FTC v. Amazon (Alexa) · In effect
- FTC v. DoNotPay · In effect
- FTC v. Rytr · Repealed / replaced
- FTC Operation AI Comply (Sept. 2024) · In effect
Related children's online safety rules elsewhere
- PA v. Character.AI (Fake Psychiatrist Chatbot) · Blocked / in litigation
- RI AI Companion Self-Harm Safety (2026) · Enacted (not yet in effect)
- Kids Internet and Digital Safety Act (KIDS Act) (H.R. 7757) · Proposed / pending
- Oregon SB 1546 (AI companion chatbot disclosure + private right of action) · Enacted (not yet in effect)
- xAI v. Harwood (Grok NCII Counter-Suit 2026) · Blocked / in litigation
- Blanchester OH schools AI policy EDEC (Jun. 29, 2026) · In effect
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