The Federal Trade Commission (FTC) has filed a complaint against Iconic Hearts Holdings, Inc., the company behind the Sendit anonymous messaging app, and its CEO, Hunter Rice. The FTC alleges that the company unlawfully collected personal data from children under 13 and misled users through deceptive messages and subscription practices.
The complaint, which was filed by the Department of Justice after being referred by the FTC, claims that Iconic Hearts violated the Children’s Online Privacy Protection Rule (COPPA). This rule requires online services that collect information from children under 13 to notify parents about data collection and obtain their consent before gathering such information.
According to the FTC, “Sendit’s operator and CEO were well aware that many of its users were under the age of 13 and still failed to comply with COPPA,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “At the same time, they manipulated many users, including children, into signing up for their weekly subscription service by sending fake messages and promising to reveal the identity of message senders but failing to deliver.”
The complaint states that in 2022 alone, more than 116,000 Sendit users reported being under 13 years old. Despite this knowledge and receiving complaints from parents about young users, Iconic Hearts did not inform parents about collecting personal data such as phone numbers, birthdates, photos, and social media usernames. The company also did not obtain verifiable parental consent as required by law.
Further allegations include claims that Iconic Hearts used deceptive tactics to encourage users—many of whom were minors—to purchase a premium “Diamond Membership.” These tactics included sending fake messages purportedly from friends or contacts when in reality they were generated by Iconic Hearts. Some fake messages were described as provocative or sexual in nature. Users were told they could learn who sent these messages if they bought a Diamond Membership; however, buyers either received false information or only generic details like location or device type. Additionally, terms regarding recurring billing—up to $9.99 per week—were not clearly disclosed.
The complaint also accuses Iconic Hearts and Rice of violating both the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA), which prohibits certain unfair or deceptive internet sales practices involving negative option features.
The Commission voted unanimously (3-0) to refer the case to the Department of Justice for filing in U.S. District Court for the Central District of California. The outcome will be determined by the court.
Lead attorneys for this matter are Siobhan Amin, Miles Freeman, and John Jacobs from the FTC’s Western Region Los Angeles office.
The FTC encourages consumers to stay informed about scams and business practices through resources at consumer.ftc.gov and ReportFraud.ftc.gov.
