The Federal Trade Commission has begun a refund claims process for consumers who were charged without authorization for subscriptions to the anonymous messaging app NGL, following a sweeping enforcement action that accused the company of deceptive practices, unlawful billing, and targeting children and teens.
The refunds stem from a lawsuit filed by the FTC and the Los Angeles County District Attorney’s Office against NGL Labs, LLC and its co-founders, Raj Vir and Joao Figueiredo. Under a proposed settlement, the defendants agreed to pay a total of $5 million—$4.5 million for consumer redress and a $500,000 civil penalty to the Los Angeles DA—and to stop offering or marketing anonymous messaging apps to anyone under 18.
The FTC is now using the settlement funds to compensate eligible consumers who paid for an NGL Pro subscription between January 2022 and July 2024 and experienced unauthorized charges. Consumers must be at least 18 years old to submit a claim, though parents or guardians may file on behalf of younger users. All claims will be reviewed before refunds are issued.
Fake Messages and Misleading Subscriptions
According to regulators, NGL grew its user base through deceptive tactics that included sending millions of fake, computer-generated anonymous messages designed to appear as if they came from friends or social media contacts. Messages such as “are you straight?” or “I know what you did” were allegedly used to provoke curiosity or anxiety and drive engagement.
When users received these messages—real or fake—they were encouraged to subscribe to NGL Pro, which cost up to $9.99 per week. The company claimed the paid service would reveal the identity of the sender. In reality, regulators say, subscribers received only vague and often useless “hints,” such as the time a message was sent, whether the sender used an iPhone or Android device, or a general location—never the sender’s name.
The FTC and the Los Angeles DA also alleged that NGL failed to clearly disclose that NGL Pro was a recurring weekly charge and did not obtain informed consent, in violation of the Restore Online Shoppers’ Confidence Act. Many users believed the purchase was a one-time fee and were charged repeatedly.
Targeting Kids and Teens
A central focus of the case was NGL’s alleged targeting of children and teenagers. Regulators say the company marketed the app as a “safe space for teens,” encouraged employees to recruit high school students and influencers, and reached out directly to popular teens on social media to promote the service.
Despite these claims, the FTC alleged that NGL knew anonymous messaging apps pose serious risks of cyberbullying and harassment. Complaints cited widespread bullying, threats, and severe emotional harm, including reports of self-harm and suicide ideation linked to the app.
“NGL marketed its app to kids and teens despite knowing that it was exposing them to cyberbullying and harassment,” FTC Chair Lina M. Khan said in a statement, calling the company’s conduct a “reckless disregard for kids’ safety.”
Los Angeles County District Attorney George Gascón said the anonymity enabled by the app “can facilitate rampant cyberbullying among teens, causing untold harm to our young people.”
False AI Safety Claims and Privacy Violations
Regulators also accused NGL of falsely advertising its safety features, claiming it used “world class AI content moderation” to filter out bullying and harmful messages. In practice, the FTC said, threats and abusive content—including emoji-based threats—were common.
The complaint further alleged violations of the Children’s Online Privacy Protection Act (COPPA). According to regulators, NGL collected and retained personal information from children under 13 without parental notice or verifiable consent, failed to delete children’s data upon request, and retained such data longer than necessary.
Settlement Terms
If approved by a federal court, the order will permanently bar NGL and its founders from marketing anonymous messaging apps to anyone under 18. It also requires the company to implement a neutral age gate, stop making misleading claims about AI moderation or message senders, clearly disclose and obtain consent for recurring charges, and provide easy cancellation and billing reminders for subscriptions.
The FTC voted 5-0 to authorize the complaint and proposed order, which were filed in U.S. District Court for the Central District of California.
For consumers affected by the unauthorized charges, the newly launched refund process represents the final step in an enforcement action that regulators say sends a clear message: deceptive practices, especially those that exploit children and teens, will not be tolerated.
Read complaint here
