FTC Chairman Ferguson Warns Companies Against Censoring or Weakening the Data Security of Americans at the Behest of Foreign Powers

Federal Trade Commission Chairman Andrew N. Ferguson sent letters to more than a dozen prominent technology companies reminding them of their obligations to protect the privacy and data security of American consumers despite pressure from foreign governments to weaken such protections. He also warned them that censoring Americans at the behest of foreign powers might violate the law. The letters were sent to companies that provide cloud computing, data security, social media, messaging apps and other services and include: Akamai, Alphabet, Amazon, Apple, Cloudflare, Discord, GoDaddy, Meta, Microsoft, Signal, Snap, Slack and X. The letters noted that companies might feel pressured to censor and weaken data security protections for Americans in response to the laws, demands, or expected demands of foreign powers. These laws include the European Union’s Digital Services Act and the United Kingdom’s Online Safety Act, which incentivize tech companies to censor worldwide speech, and the UK’s Investigatory Powers Act, which can require companies to weaken their encryption measures to enable UK law enforcement to access data stored by users. The letter noted that as companies consider how to comply with foreign laws and demands, they are still required to comply with the FTC Act’s prohibition against unfair and deceptive practices in the marketplace. For example, if a company promises consumers that it encrypts or secures online communications but then adopts weaker security in response to demands from a foreign government, such an action could be considered a deceptive practice under the FTC Act, the letter noted.