LOS ANGELES, CA – The U.S. Department of Justice, in coordination with the Federal Trade Commission (FTC), has filed a civil lawsuit against Iconic Hearts Holdings Inc. and its founder and CEO Hunter Rice, alleging violations of federal consumer protection laws related to the Sendit social media messaging app.
Filed in the U.S. District Court for the Central District of California, the complaint accuses the defendants of violating the FTC Act, the Restore Online Shoppers’ Confidence Act (ROSCA), and the Children’s Online Privacy Protection Act (COPPA). The lawsuit alleges the company generated and sent millions of anonymous and often romantic or sexual messages to users—many of whom are minors—falsely implying the messages were from social media contacts.
Defendants allegedly misled users into purchasing a “Diamond Membership,” promising to reveal the identity of message senders. These memberships, which cost up to $9.99 per week and renew automatically, were allegedly sold without disclosing key terms clearly and conspicuously, in violation of ROSCA.
Additionally, the lawsuit claims that Iconic Hearts Holdings violated COPPA by collecting personal information from users under 13 without providing parental notice or obtaining verifiable parental consent.
Assistant Attorney General Brett A. Shumate stated, “The Department of Justice is committed to preventing companies from using unfair and misleading business practices to profit off of American children.”
The lawsuit seeks civil penalties, consumer restitution, and injunctive relief.
The case is being handled by Trial Attorney Marcus P. Smith and Assistant Director Zachary A. Dietert of the DOJ’s Consumer Protection Branch, with FTC attorneys Siobhan C. Amin, Miles D. Freeman, and John D. Jacobs.
