The FTC issued warning letters to 13 data brokers reminding them of their obligations under the Protecting Americans' Data from Foreign Adversaries Act (PADFAA), which bans the sale or disclosure of sensitive personal data to foreign adversaries like China, Russia, Iran, and North Korea. The letters cite instances where recipients offered data on Armed Forces members, which is protected under PADFAA. Non-compliance could result in civil penalties up to $53,088 per violation.
The data brokers are instructed to conduct a comprehensive review of their business practices to ensure compliance with PADFAA.
In-house legal teams should review all vendor and customer agreements where the company acts as a data broker or data recipient. Specifically examine data sharing, sale, or licensing clauses to ensure they explicitly prohibit the transfer of 'personally identifiable sensitive data' (as defined by PADFAA) to any foreign adversary (China, Russia, Iran, North Korea) or entities controlled by them. Clauses involving data about U.S. Armed Forces members require heightened scrutiny and must be barred. Agreements should be amended to incorporate PADFAA's restrictions, mandate recipient representations regarding foreign adversary status, and require compliance certifications. Data processing agreements and internal data handling policies must be updated to reflect the new legal boundaries on data dissemination.
Entity
13 data brokers
Also known as: Data Brokers
Industry
Data BrokerOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/02/ftc-reminds-data-brokers-their-obligations-comply-padfaa
military padfaa warning letter template
https://www.ftc.gov/system/files/ftc_gov/pdf/military-padfaa-warning-letter-template.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"13 data brokers"
"Protecting Americans’ Data from Foreign Adversaries Act of 2024 (PADFAA)"
"prohibits data brokers from selling, releasing, disclosing, or providing access to personally identifiable sensitive data about Americans to any foreign adversary"
The FTC sent warning letters to 12 companies offering 'nudify' tools that generate nonconsensual intimate images, for failing to comply with the TAKE IT DOWN Act (TIDA) by not providing a mechanism for victims to request removal of such content. The letters urge immediate compliance with TIDA, which requires platforms to remove nonconsensual intimate images within 48 hours of a valid request. Noncompliant companies may face future legal action and civil penalties of up to $53,088 per violation.
The FTC began enforcing the TAKE IT DOWN Act on May 19, 2026, a law requiring covered platforms to establish a process for victims to request removal of nonconsensual intimate images and delete such content within 48 hours of a valid request. The agency launched a consumer complaint portal, issued compliance guidance for businesses and consumers, and sent reminder letters to major platforms including Meta, TikTok, and X about their obligations under the law. No specific penalties or enforcement actions against individual companies were announced in this release.
$6.5M
A federal court held Cliq Inc. and its executives Andrew Phillips and John Blaugrund in civil contempt for multiple violations of a 2015 FTC order requiring the payment processor to prevent enabling consumer fraud. The court found the defendants facilitated fraud by processing transactions for high-risk merchants, avoiding fraud monitoring, failing to conduct required underwriting, and ignoring chargeback thresholds. The court imposed $6.5 million in civil contempt sanctions against the defendants.
$795.8M
The FTC and State of Nevada settled charges with lead defendants of the IM Mastery Academy MLM scheme, including Chris and Isis Terry and their affiliated companies, over false earnings claims used to promote financial training programs and a multi-level marketing venture. The stipulated order imposes a $795.8 million judgment, with defendants surrendering nearly $90 million in assets including luxury real estate, vehicles, jewelry, and a yacht, totaling over $100 million with prior judgments from other involved defendants. The order also bans defendants from selling trading-training services, prohibits false earnings claims, and restricts deceptive practices including negative-option misrepresentations and telemarketing violations.
The FTC and State of Illinois, via the Department of Justice, filed a complaint against B.E.S.T. GDR LLC (d/b/a Premium Home Service) and its owner Yosef Bernath for creating thousands of fake home repair business listings with fabricated five-star reviews to deceive consumers. The defendants allegedly routed consumer calls to unqualified representatives, arranged for unlicensed technicians, and violated the FTC Act, Reviews and Testimonials Rule, Gramm-Leach-Bliley Act, and Illinois consumer protection laws. No monetary penalty has been imposed yet as the case is in initial filing stages.
Federal Trade Commission Chairman Andrew N. Ferguson sent letters to over a dozen major technology companies reminding them of their obligation to comply with the Take It Down Act (TIDA) by May 19, 2026. TIDA requires covered platforms to establish a process for victims, including children, to request removal of nonconsensual intimate images, with takedown of content and all identical copies required within 48 hours of a valid request. The FTC also issued supplemental guidance to help companies prepare for compliance and warned that it will monitor and enforce violations of the law.