NGL, the anonymous messaging app popular among teens, has been acquired by Mode Mobile, known for its EarnPhone. The acquisition marks a significant transition for NGL, which faced controversies over bullying and FTC fines.
FTC Investigation and Penalties
NGL experienced a rapid rise in late 2021, becoming popular for its anonymous messaging features. However, it faced backlash due to incidents of bullying and harassment. In 2022, Snapchat banned third-party apps like NGL following a lawsuit over a teen's suicide reportedly influenced by the app.
Following a lengthy investigation, the FTC fined NGL $5 million and prohibited the app's use by minors. The company had reportedly sent fake messages and misled users into paying $9.99 monthly for fabricated hints about message senders.
New Integrations and Strategy
With NGL’s acquisition, founders Raj Vir and João Figueiredo will exit the company, while three employees will join Mode Mobile. Mode Mobile is the creator of EarnPhone, a smartphone that rewards users with cash for engagement-driven activities like listening to music, playing games, or browsing the web while viewing ads.
Mode Mobile plans to integrate NGL's engagement features into its ad-reward ecosystem, enhancing the ways users interact with digital content.
