FTC Targets Sendit For COPPA Violations and Misleading Billing Practices

The Federal Trade Commission (FTC) has filed suit against Iconic Hearts Holdings Inc., the parent company of Sendit, and its CEO, Hunter Rice, alleging COPPA violations, writes Malwarebytes’ Danny Bradbury.

Violations of federal child privacy and consumer protection laws are alleged. The complaint contends that the company unlawfully collected personal data from users under 13 without parental consent, and misled them with deceptive subscription practices and fake social interactions.

The FTC’s move reflects a growing scrutiny of apps targeting younger users, especially those integrated with major social media platforms.

Sendit functions as an add-on to Snapchat and Instagram, enabling users to post questions and receive anonymous replies. The FTC asserts that, despite knowing that over 116,000 Sendit users self-identified as being under 13, the company continued to gather sensitive information, including phone numbers, birthdates, and linked social media usernames.

In addition, Sendit’s paid “Diamond Membership” allegedly misrepresented its capabilities by promising to identify message senders but failing to do so. According to the complaint, the company itself fabricated some messages to increase engagement and subscription purchases.

The FTC also claims that Iconic Hearts obscured recurring weekly fees of up to $9.99, giving the impression that these were one-time charges.

The case, which was referred to the Department of Justice for prosecution in the Central District of California, departs from the FTC’s typical settlement approach. Legal observers note that penalties under the Children’s Online Privacy Protection Act (COPPA) can reach $53,088 per violation.

The action signals a stronger federal approach to digital deception and the management of youth data. For attorneys, the result may clarify enforcement limits of COPPA violations as the FTC continues to target companies that blur the lines between ethics and law in digital engagement.