The Federal Trade Commission has taken enforcement action against the operator of the Sendit anonymous messaging app, alleging the company unlawfully collected personal data from children and used deceptive practices to manipulate users into purchasing paid subscriptions.
The Department of Justice filed a complaint on behalf of the FTC against Los Angeles-based Iconic Hearts Holdings, Inc., and its CEO Hunter Rice, alleging violations of the Children's Online Privacy Protection Rule and unfair business practices. The complaint centers on Sendit, an anonymous messaging app that allows users to send messages without revealing their identity.
According to the complaint, Iconic Hearts violated COPPA by collecting personal information from children under 13 without obtaining proper parental consent. The Children's Online Privacy Protection Rule requires operators of websites and apps to notify parents about data collection practices and obtain verifiable parental consent before collecting personal information from children under 13.
The FTC alleges that Iconic Hearts was well aware many Sendit users were minors but failed to comply with federal privacy protections. In 2022 alone, more than 116,000 users reported their age as under 13 while using the app, according to the complaint. The company also received direct complaints from parents indicating their children were under 13 years old.
Despite this knowledge, Iconic Hearts allegedly collected extensive personal information from child users without parental notification or consent. The data collection included phone numbers, birthdates, photos, and usernames for social media platforms including Snapchat, Instagram, and TikTok.
"Sendit's operator and CEO were well aware that many of its users were under the age of 13 and still failed to comply with COPPA," said Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection. "At the same time, they manipulated many users, including children, into signing up for their weekly subscription service by sending fake messages and promising to reveal the identity of message senders but failing to deliver."
Beyond the privacy violations, the FTC alleges Iconic Hearts engaged in deceptive practices designed to manipulate users into purchasing premium subscriptions. The company allegedly sent fake messages purporting to be from real users to create artificial engagement and encourage subscription purchases.
The scheme involved falsely promising users that premium subscriptions would reveal the identities of anonymous message senders. According to the complaint, the company used these fake messages specifically to target children and teenagers, taking advantage of their curiosity about who might be messaging them anonymously.
The FTC also alleges that Iconic Hearts failed to clearly disclose the terms of its subscription plans, making it difficult for users to understand what they were purchasing and how to cancel recurring charges.
This enforcement action represents part of the FTC's broader efforts to protect children's privacy online and crack down on deceptive subscription practices. COPPA violations have become a priority for federal regulators as more children use digital platforms and apps.
The anonymous messaging app market has grown significantly, particularly among teenagers and young adults who use platforms like Snapchat and Instagram. These apps often integrate with existing social media platforms, allowing users to receive anonymous messages through their regular social media accounts.
However, the anonymous nature of these services has raised concerns about their potential for misuse, including cyberbullying, harassment, and privacy violations. The Sendit case highlights how some operators may exploit young users' curiosity about anonymous messages to generate revenue through deceptive subscription practices.
The complaint seeks monetary penalties and injunctive relief to prevent future violations. Under COPPA, companies can face civil penalties of up to $51,744 per violation, which could result in substantial financial consequences given the alleged widespread nature of the violations.
For parents and consumers, this case underscores the importance of understanding what personal information apps collect and how subscription services operate. The FTC recommends that parents review privacy policies and subscription terms before allowing children to use new apps or services.
The case also serves as a warning to other app operators about the importance of COPPA compliance and transparent business practices. As federal regulators increase scrutiny of digital platforms, companies that collect data from children or use deceptive marketing practices face heightened enforcement risks.
The outcome of this case could influence how anonymous messaging apps operate and market their services, particularly regarding data collection from minors and subscription disclosure requirements. Companies in this space will likely need to implement stronger age verification systems and clearer subscription terms to avoid similar enforcement actions.