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)
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.
Technical detail
United States 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.
Who is protected: Minor users of anonymous-messaging apps
Who must comply: NGL Labs, LLC and similarly situated chatbot apps marketing to minors
Key facts
| Jurisdiction | FTC |
|---|---|
| Level | Federal |
| Status | In effect |
| Protection strength | Moderate protection |
| Effective date | 2024-07-09 |
| 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 |
| Last verified | 2026-06-17 |
| Official source | 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 · In effect
- FTC Operation AI Comply (Sept. 2024) · In effect
Related children's online safety rules elsewhere
- TAKE IT DOWN Act · In effect
- COPPA + 2025 Rule (childrens data) · In effect
- AI Companion Safeguards Law · In effect
- CT SB 5 (2026 AI Act) · Enacted (not yet in effect)
- SB 1546 (OR Chatbot Safety) · Enacted (not yet in effect)
- SB 540 (GA Chatbot Safety) · Enacted (not yet in effect)
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