FTC vs. Sendit: Lawsuit Alleges Data Theft, Fake Messages, and Subscription Traps

Daily Security Review

The Federal Trade Commission (FTC) has filed a high-profile lawsuit against Sendit, a social media companion app popular among teenagers, and its CEO. The case accuses the company of breaking three major U.S. laws designed to protect consumers and children online.

First, the FTC alleges that Sendit violated the Children’s Online Privacy Protection Act (COPPA) by knowingly collecting personal data—such as phone numbers, birthdates, photos, and usernames—from more than 100,000 children under 13 without parental consent.

Second, the lawsuit charges Sendit with deceptive practices under the FTC Act. According to investigators, the app allegedly generated fake anonymous messages—some provocative or sexual in nature—to trick users into engaging more with the app. In addition, Sendit is accused of falsely promising that its premium “Diamond Membership” would reveal the identities of message senders, when in reality, it did not deliver on those promises.

Finally, the FTC claims the company violated the Restore Online Shoppers’ Confidence Act (ROSCA) by misleading users about the nature of its paid services. Instead of a one-time payment, users who signed up for the Diamond Membership were automatically billed up to $9.99 per week without clear disclosure—an example of the “dark patterns” regulators are increasingly cracking down on.

This lawsuit not only represents a potential turning point for Sendit but also serves as a warning shot to the broader social media and app ecosystem. As regulators increase scrutiny of platforms that target young users, the case underscores the importance of transparency, parental protections, and ethical digital business practices.

#FTC #Sendit #COPPA #TeenSafety #DigitalPrivacy #DarkPatterns #SocialMedia #OnlineSafety #ConsumerProtection #DiamondMembership