FTC Files Complaint Against Sendit for Illegal Data Practices and User Deception
The Federal Trade Commission (FTC) has formally charged Sendit, an anonymous question app popular with Generation Z, with unlawfully collecting data from children under 13 years of age and employing deceptive tactics to mislead users and coerce payments.
Sendit’s Rise as a Leading Anonymous Question Platform Among Teens
Sendit allows predominantly teenage users to send and receive anonymous questions through integrations with Instagram, TikTok, and Snapchat. Following the suspension of similar apps like YOLO and LMK on Snapchat in 2021—due to lawsuits linked to a child’s suicide—Sendit quickly surged in popularity, amassing over 3.5 million downloads as it became the preferred alternative for anonymous social interactions.
Allegations of Fake Messages and Misleading In-App Purchases
According to the FTC complaint, Sendit sent users fabricated provocative messages such as “Would you ever get with me?” or “Have you done drugs?” to entice engagement. Users were then prompted to purchase a “Diamond Membership” at $9.99 to identify message senders. However, the FTC highlights that the app failed to clearly disclose this fee as a recurring weekly subscription rather than a one-time payment.
Even more concerning, when users attempted to reveal the sender behind these messages, the identities provided were often false, as the messages were generated internally by Sendit itself.
Violation of Children’s Online Privacy Protection Act (COPPA)
The FTC also alleges that Sendit knowingly collected personal data from users under the age of 13 without obtaining verifiable parental consent, a direct violation of COPPA. In particular, the complaint cites a 2022 incident where over 116,000 users reported being under 13, yet Sendit’s parent company, Iconic Hearts, neither notified parents nor sought permission for data collection.
User Backlash and Company’s Dismissive Stance
In 2022, App Store reviews revealed user grievances about Sendit’s marketing practices, including misleading promotion of the “Sendit Reveal” app, which claimed to expose anonymous message senders. When questioned by TechCrunch about these manipulative tactics, Sendit founder Hunter Rice dismissed the concerns as clickbait, emphasizing the positive aspects of the app.
Legal Actions Within the Anonymous App Sector
Sendit also pursued legal action against competitor NGL in 2022, accusing it of appropriating the concept of fake anonymous questions and other proprietary elements. Following media scrutiny, NGL discontinued the disputed practices to maintain its presence in the App Store.
FinOracleAI — Market View
The FTC’s complaint against Sendit highlights systemic risks associated with anonymous social media apps targeting minors. The deceptive monetization strategies and illegal data collection practices expose vulnerabilities in app governance and regulatory compliance within this niche.
- Opportunities: Increased regulatory scrutiny may incentivize the development of safer, more transparent social apps for younger audiences.
- Risks: Companies operating in this space face heightened legal risks and reputational damage, potentially reducing user trust and investor confidence.
- Potential for stronger enforcement of COPPA and consumer protection laws in digital environments frequented by children and teens.
- Market consolidation as non-compliant apps are removed or forced to revise business models.
Impact: This regulatory action signals a tightening landscape for apps monetizing on anonymous communications, particularly those engaging minors, likely prompting industry-wide reassessment of data privacy and user transparency practices.
