Sendit App Deceived Children, Illegally Collected Data

FTC Files Complaint Against Sendit for Data Collection and Deceptive Practices

The Federal Trade Commission (FTC) has initiated legal action against Sendit, a question-and-answer application favored by Generation Z. The complaint alleges unlawful collection of data from children, misleading users regarding message origins, and employing deceptive tactics to encourage membership purchases.

How Sendit Operates

Sendit allows users, predominantly teenagers, to exchange anonymous questions through connections with platforms like Instagram, TikTok, and Snapchat. Similar applications, including YOLO and LMK, have faced prior scrutiny and suspension from Snapchat following legal action related to a tragic incident.

Following the suspension of those apps, Sendit experienced rapid growth, accumulating 3.5 million downloads as users sought alternative platforms for anonymous communication.

Deceptive Messaging Practices

Investigations by TechCrunch revealed that Sendit and other anonymous apps, such as NGL, engaged in practices that misled users. This included the generation of fabricated messages designed to prompt in-app purchases for revealing the sender’s identity.

The FTC’s complaint corroborates these findings, asserting that Sendit dispatched users provocative, artificial messages – examples include inquiries like “would you ever get with me?” or “have you done drugs?”

Recurring Charges and False Information

Users were offered a “Diamond Membership” for $9.99 to uncover the identity of a message sender. However, the FTC contends that the recurring weekly nature of this payment was not adequately disclosed, leading users to believe it was a one-time fee.

Furthermore, when a user attempted to identify the sender of a message originating from Sendit itself, they were provided with inaccurate information.

COPPA Violations and Data Collection

The FTC also accuses Sendit of knowingly collecting personal data from individuals under the age of 13 without obtaining required parental consent, a direct violation of the Children’s Online Privacy Protection Act (COPPA).

Specifically, the FTC highlighted an instance in 2022 where over 116,000 users indicated they were under 13. Sendit’s parent company, Iconic Hearts, failed to notify parents about this data collection or seek necessary permissions.

Misleading App Store Marketing

TechCrunch’s research uncovered user complaints in App Store reviews. These reviews detailed how the “Sendit for Instagram” application was marketed as “Sendit Reveal,” falsely promising to unveil the identities of anonymous senders.

When questioned about these deceptive marketing tactics, Sendit founder Hunter Rice dismissed the concerns as “clickbait” and expressed a preference for discussing “real news.”

Legal Disputes with Competitors

In 2022, Sendit initiated a lawsuit against competitor NGL, alleging the theft of its concept for fabricated anonymous questions and other proprietary trade secrets. Following TechCrunch’s reporting, NGL was compelled to discontinue this practice to maintain its presence in the App Store.