Federal regulators have banned anonymous messaging app NGL from serving kids under 18 amid rampant cyberbullying claims.
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00:00I'm Conway Gittens reporting from the New York Stock Exchange. Here's what we're watching on
00:03the street today. Stocks are coming off yet another record day with the S&P 500 and the
00:07Nasdaq crossing all-time highs on Tuesday. Investors are feeling optimistic after Fed
00:13Chair Jerome Powell warned that keeping rates too high for too long could hurt economic growth.
00:20And in other news, federal regulators are banning a popular social media app from serving kids under
00:2518 for the first time ever. The Federal Trade Commission and the Los Angeles District Attorney's
00:30Office are banning anonymous messaging app NGL due to rampant cyberbullying on the platform.
00:37The FTC alleges that despite marketing the anonymous messaging app as a, quote,
00:42safe place for teens, NGL made false claims about its AI content moderation. The suit also
00:49claims that NGL tricked people into paying for subscriptions by sending fake computer-generated
00:54messages to users. It also claims that the app violated laws aimed at protecting children's data
01:00with employees referring to paying customers as, quote, suckers. The app, which it launched
01:06back in 2021, allows users to link their social media accounts so that friends and followers could
01:11ask anonymous questions. NGL is an internet abbreviation for the phrase, not gonna lie.
01:17NGL is paying $5 million to settle the suit. While the company disputes some of the allegations in
01:23the suit, its co-founder says it will use the settlement as an opportunity to improve its
01:28platform. That'll do it for your daily briefing from the New York Stock Exchange. I'm Conway Gittens
01:33with The Street.