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NGL Acquired: Teens' Anonymous App Joins Ad-Flooded Earnphone

Summary

  • Anonymous messaging app NGL has been acquired by Mode Mobile.
  • NGL previously paid $5 million to the FTC over deceptive practices.
  • Mode Mobile floods its users with ads in exchange for rewards.
NGL Acquired: Teens' Anonymous App Joins Ad-Flooded Earnphone

Anonymous messaging app NGL was acquired by Mode Mobile, a company that offers a smartphone with built-in reward features funded by extensive advertising. NGL gained popularity among teens in late 2021 but was marred by controversies, including allegations of encouraging bullying and deceptive growth hacking tactics.

In a significant intervention, the FTC announced in 2024 its ban on NGL offering its app to minors, citing bait-and-switch tactics. NGL paid a $5 million fine to the FTC and complied with demands. Its two founders are departing, while three employees will join Mode Mobile.

Mode Mobile's 'earnphone' concept involves users performing everyday tasks for rewards, driven by revenue from digital advertising partners who pay for user attention. This acquisition pairs an app with a troubled past with a business model reliant on constant user engagement through advertisements.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.

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