The FTC’s Expanding Role in Privacy and Data Security Enforcement

While the U.S. still lacks a comprehensive federal privacy law, the Federal Trade Commission has steadily expanded its enforcement footprint — and companies that assume federal oversight is limited to the FTC’s traditional consumer protection mandate are underestimating the risk.

Under Section 5 of the FTC Act, the Commission treats inadequate data security and deceptive privacy practices as unfair or deceptive acts, and it has levied significant orders and civil penalties accordingly. Recent enforcement actions have targeted companies for: failing to implement reasonable security measures after a breach, making misleading representations about data sharing practices, retaining consumer data longer than disclosed, and using health data for advertising in ways inconsistent with disclosed purposes.

Critically, FTC orders frequently require companies to implement comprehensive information security programs, submit to third-party audits for 20 years, and obtain affirmative consumer consent before changing data practices — obligations that persist long after the original enforcement action. Companies in e-commerce, fintech, health tech, and data brokerage face the highest exposure. A robust, documented privacy and security program is no longer just a state law compliance requirement — it is the foundation of federal risk management as well.