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FTC Opens $4.5M Refund Process for NGL App Users Hit by Deceptive Charges

The Federal Trade Commission has launched a refund claims process for consumers who were charged without authorization for subscriptions to the anonymous messaging app NGL. The move follows a $4.5 million settlement after the FTC alleged NGL deceived users with fake messages and unauthorized recurring charges.

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4 min readftc-news

Key Takeaways

  • FTC opened refund claims process for NGL users charged without authorization for app subscriptions
  • Settlement requires NGL to pay $4.5 million after allegations of fake messages and deceptive marketing to minors
  • Claims deadline extends until April 6, 2026, with online submission available at www.ftc.gov/NGL
  • NGL banned from marketing anonymous messaging apps to users under 18 as part of settlement terms

The Federal Trade Commission has opened a refund claims process for consumers who were charged without authorization for subscriptions to the anonymous messaging app NGL, following a $4.5 million settlement that resulted from allegations of deceptive practices targeting minors.

The refund process stems from a July 2024 enforcement action by the FTC and the Los Angeles District Attorney's Office against NGL and two of its co-founders. The agencies alleged that the company engaged in multiple law violations related to their anonymous messaging platform, including unfairly marketing the service to children and teens.

According to the settlement, NGL and its co-founders sent fake messages that appeared to come from real people, tricking users into signing up for paid subscriptions to NGL Pro. The company falsely claimed that purchasing the subscription would reveal the identity of message senders, the agencies alleged. Additionally, NGL failed to obtain proper consent for recurring charges, violating consumer protection laws.

The settlement order imposed significant restrictions on NGL's business practices. The company is now banned from marketing anonymous messaging apps to children and teens under 18 years old. The order also required NGL to pay $4.5 million specifically to provide refunds to affected users.

Consumers who meet specific criteria can now claim refunds through the FTC's process. Eligible users must have paid for NGL Pro subscriptions between January 2022 and July 2024 and experienced unauthorized charges during that period.

The claims process includes important age restrictions that reflect the case's focus on protecting minors. Consumers must be at least 18 years old to submit a refund claim form directly. For users under 18, a parent or guardian must complete and submit the form on their behalf, acknowledging the app's particular impact on younger users.

The FTC has established an accessible claims process for affected consumers. Eligible users can submit claims online at www.ftc.gov/NGL, with the claims period remaining open until April 6, 2026. This extended timeframe provides ample opportunity for affected consumers to learn about and participate in the refund process.

All submitted claims will undergo review before the FTC determines eligibility. Payment amounts will vary based on several factors, including the total number of people who file claims. This structure is typical of FTC settlement distributions, where the available funds are divided among eligible claimants.

The case highlights broader regulatory concerns about digital platforms that target younger users. The allegations against NGL include unfairly marketing to children and teens, reflecting increased scrutiny of how technology companies engage with minor users. The settlement's ban on marketing anonymous messaging apps to users under 18 represents a direct response to these concerns.

The FTC's allegations paint a picture of deceptive business practices designed to generate subscription revenue. By sending fake messages that appeared genuine, NGL allegedly created artificial engagement that drove users toward paid services. The promise that NGL Pro subscriptions would reveal message senders' identities was central to this alleged deception.

Unauthorized recurring charges represent another significant component of the case. The FTC alleged that NGL failed to obtain proper consent before charging users for ongoing subscriptions, a practice that violates established consumer protection standards for digital services.

For consumers seeking information about the refund process, the FTC has established multiple contact methods. Questions can be directed to the claims administrator by phone at 800-351-7161 or by email at info@NGLRefund.com. This support infrastructure aims to ensure that eligible consumers can navigate the claims process effectively.

The case against NGL reflects broader enforcement trends targeting deceptive practices in digital marketplaces, particularly those affecting younger consumers. Anonymous messaging apps have faced increased regulatory attention due to concerns about their potential for misuse and their appeal to teenage users.

The settlement's financial component - the $4.5 million refund fund - represents a substantial commitment to compensating affected consumers. However, individual payment amounts will depend on the total number of valid claims received, making early participation in the claims process potentially beneficial for eligible users.

This enforcement action demonstrates the FTC's continued focus on protecting consumers from unauthorized charges and deceptive marketing practices in digital services. The case's emphasis on protecting minors from unfair marketing practices also reflects regulatory priorities around children's digital safety.

Consumers who believe they may be eligible for refunds should review their payment records for NGL Pro charges between January 2022 and July 2024. The online claims process at www.ftc.gov/NGL provides a straightforward path for seeking compensation, with the extended deadline ensuring adequate time for submission.

Topics

consumer refundsdeceptive practicesunauthorized chargesapp marketingchildren's privacysettlement enforcement

Original Source: ftc-news

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