The Federal Trade Commission, with support from the Department of Justice, has filed a civil complaint against Iconic Hearts Holdings and its CEO for alleged violations tied to the Sendit anonymous messaging app. The regulators claim the app deceived users—especially minors—by sending provocative “anonymous” messages generated by the company itself, then pushing users to pay for a “Diamond Membership” to reveal the sender (who often didn’t exist). The complaint also alleges the app collected personal data—phone numbers, birthdates, photos, and social media usernames—from children under 13 without obtaining parental consent or notifying guardians, in violation of the Children’s Online Privacy Protection Rule (COPPA). Additional accusations include failure to clearly disclose that the Diamond Membership auto-renews weekly and misrepresentations under consumer protection and online commerce laws. The lawsuit seeks monetary penalties, injunctive relief, and restitution for harmed users.
Sources: US Federal Trade Commission, US Dept of Justice
Key Takeaways
– The complaint alleges Sendit misled minors by generating fake provocative messages and selling them the illusion of revealing real senders if they paid for a subscription.
– It claims the company gathered sensitive data from users under 13 without verifiable parental consent, in direct violation of COPPA rules.
– Regulators are also pursuing claims under broader consumer protection laws, including failure to clearly disclose automatic renewal terms and deceptive billing practices.
In-Depth
The recent filing by the FTC and DOJ sets the spotlight on how “anonymous messaging” apps can cross ethical—and legal—lines, especially when minors are involved. Sendit carved out popularity among younger users by integrating with Instagram, Snapchat, TikTok, and offering a platform for anonymous questions. What’s troubling, regulators argue, is how that anonymity was weaponized: many of the messages users received weren’t from their friends or social media contacts, but instead created by Sendit itself to provoke curiosity or anxiety. Those messages would ask things like “Have you done drugs?” or “Would you ever get with me?”—questions primed for engagement and intrigue. Then the hook: pay $9.99 weekly for the “Diamond Membership” to unlock the sender’s identity. But according to the FTC, the app obscured that the charges were recurring, and often didn’t deliver any valid sender information at all.
Beyond deception, the heart of the legal case involves how Sendit allegedly handled children’s data. Under COPPA, any operator that knowingly collects personal information from children under 13 must provide notice to parents and obtain verifiable parental consent. The complaint claims that in 2022 over 116,000 users self-reported being younger than 13—yet Sendit continued collecting data such as phone numbers, social media names, birthdates, and photos without parental notification or consent. The regulators also contend that numerous complaints from parents and users about deceptive messaging and billing were received, but the company failed to remedy these issues.
Adding layers to the legal exposure, the DOJ complaint includes claims under the Restore Online Shoppers’ Confidence Act (ROSCA) for unfair or deceptive online sales, especially given that the subscription’s auto-renewal terms were not clearly disclosed. The FTC is seeking a permanent injunction, civil penalties, restitution to harmed consumers, and other relief.
If the regulators succeed, this case could serve as a powerful precedent for policing how tech companies target minors, transparently present billing, and handle user anonymity features. It also reinforces that companies—even app startups—can’t evade responsibilities just because their business looks “fun” or “viral.” The court’s outcome will likely prompt heightened scrutiny on anonymous apps, social features that gamify engagement, and how kids’ data is collected online.