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"
The FTC filed a complaint alleging that GovAssist LLC, Entry LLC, and Scott Zuckerman used deceptive paid search ads, misleading service and pricing claims, and fake reviews to deceive consumers seeking passport services. The complaint alleges violations of the FTC Act, the Impersonation Rule, and the Gramm-Leach-Bliley Act; the case will be decided by the court, and no penalty or remedy is reported as imposed.
The FTC issued its annual report to Congress describing fraud trends affecting older adults and the agency’s enforcement, education, and outreach efforts. The report is not a specific privacy enforcement action and announces no penalty or remedy.
The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
$106.8M
A federal court entered a $106.8 million default judgment against corporate defendants in an alleged debt-relief scheme that impersonated banks and government entities and targeted seniors and veterans. The judgment permanently bans the defendants from the debt-relief industry and imposes additional prohibitions, including on impersonation, telemarketing, and misrepresentations.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.