FTC Chairman Andrew Ferguson sent warning letters to major technology companies, urging them not to weaken data security or censor American consumers' speech in response to foreign government demands. He reminded them that such actions could violate the FTC Act's prohibition on unfair and deceptive practices, particularly if companies break promises about encryption and security. The letters cite foreign laws like the EU's Digital Services Act and UK's Investigatory Powers Act as pressures that might lead to non-compliance.
In-house legal teams should review vendor agreements, customer terms of service, data processing addendums, and any contracts involving cross-border data transfers or government demands. Focus on clauses addressing data security standards, encryption implementations (especially end-to-end encryption), content moderation/censorship policies, compliance with foreign laws, procedures for responding to government or law enforcement requests, and data retention practices. Changes may be needed to add provisions that explicitly prioritize U.S. consumer protections and FTC Act compliance over foreign government demands, require legal challenges to foreign requests that conflict with promised security or speech protections, and update privacy policies to clarify that encryption and data security promises will not be weakened due to foreign pressures.
Entity
Akamai, Alphabet, Amazon, Apple, Cloudflare, Discord, GoDaddy, Meta, Microsoft, Reddit, Signal, Snap, Slack, X
Also known as: Akamai
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2025/08/ftc-chairman-ferguson-warns-companies-against-censoring-or-weakening-data-security-americans-behest
model letter sent tech companies chairman andrew n ferguson
https://www.ftc.gov/legal-library/browse/cases-proceedings/staff-letters/model-letter-sent-tech-companies-chairman-andrew-n-ferguson
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Akamai, Alphabet, Amazon, Apple, Cloudflare, Discord, GoDaddy, Meta, Microsoft, Reddit, Signal, Snap, Slack and X."
"FTC Act’s prohibition against unfair and deceptive practices"
"adopts weaker security in response to demands from a foreign government"
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.
$4.0M
The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.
The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.
The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.
The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.