To be honest, things aren't looking good for NGL.
The Federal Trade Commission (FTC) has banned NGL from offering services to or advertising to minors, marking the first time a government agency has taken such action against an app.
You may have seen this app posted on a friend's Instagram story with a link inviting friends to send in anonymous questions. That's essentially what the product is all about. Like some of the apps that have come before, this one allows you to accept anonymous questions from your peers.
NGL was supposed to be different because it was touted as having AI that could filter out cyberbullying, which has been a big problem with these types of anonymous apps in the past, but the FTC argues that these claims about AI content moderation are misleading.
“NGL marketed the app to children and teens while knowingly exposing them to the risks of cyberbullying and harassment. Given NGL's reckless disregard for children's safety, the FTC's order will prohibit NGL from selling or offering the app to anyone under the age of 18,” FTC Chairman Lina Khan said in a press release.
NGL has also been accused of sending out fake questions and encouraging users to pay $9.99 per month to get hints about who asked them. As TechCrunch reported in 2022, it's very possible that NGL was in fact luring users with these fake questions.
What does this mean for the future of anonymous question apps? Find out more in TechCrunch Minute.