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

JurisdictionFTC
LevelFederal
StrengthModerate
CitationUnited States v. NGL Labs, LLC, No. 2:24-cv-05753 (C.D. Cal. July 9, 2024)
Topicschildren's online safety · consumer protection · AI disclosure and transparency
Agency pageNGL Banned from Offering Anonymous Messaging to Minors — FTC press release

More AI rules in FTC

Related children's online safety rules elsewhere

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