United States of America: Department of Justice and Federal Trade Commission filed lawsuit against Iconic Hearts Holdings over alleged violations of children's online privacy and consumer protection laws

On 29 September 2025, the Department of Justice (DOJ) and Federal Trade Commission (FTC) filed a lawsuit against Iconic Hearts Holdings and its founder and CEO, Hunter Rice. The complaint, lodged with the United States District Court for the Central District of California, alleges that the defendants violated the Children’s Online Privacy Protection Rule (COPPA Rule), the Restore Online Shoppers’ Confidence Act (ROSCA), and Section 5(a) of the Federal Trade Commission (FTC) Act. The defendants are the developers, marketers, and distributors of the “Sendit” mobile application, a social media messaging app targeted at children and young teenagers. The lawsuit alleges that the defendants engaged in deceptive practices, including tricking Sendit users into believing they received provocative or sometimes sexual or romantic messages, often originating from the defendants themselves, to entice them into paid “Diamond Membership” subscriptions. It is further alleged that the defendants failed to clearly and conspicuously disclose the material terms of these subscriptions, such as automatic weekly renewal, and did not fulfil promises regarding sender identification, often providing fabricated information or charging additional fees to reveal actual senders. Moreover, the complaint states that Iconic Hearts Holdings and Hunter Rice knowingly collected personal information from children under the age of 13, including names, contacts, phone numbers, and location data, without parental notification or verifiable consent, thereby violating the COPPA Rule. The lawsuit claims violations of the FTC Act and ROSCA due to inadequate disclosures and the failure to obtain express informed consent for recurring charges. The DOJ and FTC seek a permanent injunction, monetary relief, and civil penalties of up to USD 53'088 for each violation of the COPPA Rule assessed after 17 January 2025, and other appropriate remedies.