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"
$750K
The FTC finalized an order against Vanilla Chip LLC (doing business as TruHeight) and its principals for deceptively advertising height-enhancing supplements for children and teens without scientific evidence. The company also used fake reviews and incentivized 5-star ratings. The order requires a $750,000 payment and prohibits false health claims and deceptive review practices.
$2.3M
The FTC alleged that RentGrow, a tenant screening company, violated the Fair Credit Reporting Act (FCRA) by failing to use reasonable procedures to ensure the accuracy of its reports, including by reporting duplicate records and failing to disclose data sources. RentGrow agreed to pay a $2.25 million penalty and is prohibited from further FCRA violations and from misrepresenting dispute outcomes.
The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.
$35.0M
The FTC alleged that Hopper, a travel booking app, charged consumers hidden and pre-selected fees (Tip and VIP Support) without their consent, misrepresented the benefits of VIP Support and Price Freeze services, and failed to clearly disclose total prices. Hopper agreed to pay $35 million for consumer redress and is prohibited from misrepresenting fees under a proposed order.
$1.5M
The FTC finalized a settlement with Publishing.com LLC and its principals for misleading consumers about potential earnings from self-publishing products. The company will pay $1.5 million and is prohibited from making unsubstantiated earnings claims, failing to disclose refund terms, and misrepresenting endorsements and reviews.
The FTC is seeking public comment on a proposed policy statement addressing concerns that AI companies may be manipulating AI system outputs contrary to consumer expectations for objectivity and accuracy. The statement explains that such conduct could be considered deceptive under Section 5 of the FTC Act. The public comment period runs until July 31, 2026.