Anonymous question app Sendit deceived children and illegally collected their data, FTC alleges

The Federal Trade Commission (FTC) has initiated a complaint against Sendit, a popular anonymous question app among younger users, for allegedly engaging in unlawful data collection practices targeting children. The FTC asserts that Sendit misled its users about the sources of messages and coerced them into purchasing memberships. Sendit allows users—primarily teenagers—to send anonymous questions through platforms like Instagram, TikTok, and Snapchat. Following the suspension of similar apps like YOLO and LMK in 2021 due to legal issues related to a child's suicide, Sendit surged in popularity, amassing 3.5 million downloads as teens sought alternatives. Recent investigations, including those by TechCrunch, revealed that newer anonymous messaging apps, including Sendit, were deceiving users with fabricated messages and then incentivizing them to make in-app purchases to uncover the message senders. For instance, the FTC's complaint highlighted that Sendit sent users provocative fake messages, such as "would you ever get with me?" and "have you done drugs?" To reveal the sender’s identity, users were prompted to pay $9.99 for a “Diamond Membership,” which the FTC claims was misleadingly marketed as a one-time fee when it was actually a recurring weekly charge. Moreover, the FTC accused Sendit of illegally collecting data from users under the age of 13 without obtaining parental consent, in violation of the Children’s Online Privacy Protection Act (COPPA). The complaint pointed out that in 2022, over 116,000 users indicated they were under 13, yet Sendit’s parent company, Iconic Hearts, failed to inform parents or seek permission. In addition to these allegations, users expressed concerns in App Store reviews about Sendit for Instagram, which promoted itself as “Sendit Reveal,” an app claiming to disclose the identities of anonymous message senders. When approached by TechCrunch regarding these issues, Sendit founder Hunter Rice dismissed the concerns, stating the positive aspects of the app were more newsworthy than the criticisms. Sendit also took legal action against a rival, NGL, in 2022, accusing it of stealing the concept of anonymous questions and related trade secrets. NGL eventually discontinued similar practices to comply with App Store regulations following scrutiny from TechCrunch.