On September 29, the FTC announced a complaint filed by the DOJ (upon referral from the FTC), against a social media operator for alleged unlawful collection of personal data from children, deceptive messaging practices, and misleading subscription offers. According to the complaint, the app’s operator violated COPPA by knowingly collecting personal information from children under 13 without parental notice or consent. The complaint further alleged that users were tricked into believing they received provocative messages from their own social media contacts, when in fact many messages were fabricated to drive paid subscriptions.

The complaint outlined how the operator purportedly misrepresented the benefits of its premium subscription, promising users they could reveal the identity of anonymous message senders. The operator also failed to clearly disclose key terms of the subscription, such as recurring weekly charges of $8.99 or $9.99. According to the complaint, these practices generated significant refund requests and customer complaints.

The action seeks relief for violations of COPPA, the FTC Act, and the Restore Online Shoppers’ Confidence Act, which prohibits unfair or deceptive internet sales practices with a negative option feature. The complaint requested, among other things, a permanent injunction, monetary relief, and civil penalties.