Ferguson warns tech firms against weakening US data security under foreign government pressure

Webp 5pp2ko12vzx927qgsfze54lv4smd
Andrew N. Ferguson Chairman | Federal Trade Commission

Ferguson warns tech firms against weakening US data security under foreign government pressure

ORGANIZATIONS IN THIS STORY

Federal Trade Commission Chairman Andrew N. Ferguson has sent letters to more than a dozen major technology companies, reminding them of their responsibilities to safeguard the privacy and data security of American consumers. The action comes amid concerns that foreign governments may pressure these companies to weaken protections or censor content.

The recipients of the letters include leading firms such as Akamai, Alphabet, Amazon, Apple, Cloudflare, Discord, GoDaddy, Meta, Microsoft, Signal, Snap, Slack and X. These companies provide services ranging from cloud computing and data security to social media and messaging applications.

Ferguson’s letter highlights specific foreign laws such as the European Union’s Digital Services Act and the United Kingdom’s Online Safety Act. These regulations are seen by some as encouraging tech companies to restrict speech globally. Additionally, the UK’s Investigatory Powers Act could require firms to reduce encryption standards so law enforcement can access user data.

“I am concerned that these actions by foreign powers to impose censorship and weaken end-to-end encryption will erode Americans’ freedoms and subject them to myriad harms, such as surveillance by foreign governments and an increased risk of identity theft and fraud,” Chairman Ferguson wrote.

The correspondence stresses that while complying with international legal demands is complex, U.S.-based companies must still adhere to the Federal Trade Commission Act’s rules against unfair or deceptive practices. If a company assures users that their communications are encrypted but later reduces those protections due to outside pressure without disclosure, this could be considered deceptive under U.S. law.

Over the past 20 years, the FTC has taken action in dozens of cases against businesses that failed to honor commitments about consumer data protection.

The agency continues its mission to promote competition and protect consumers through education efforts available at consumer.ftc.gov. Consumers can report suspected fraud or scams at ReportFraud.ftc.gov. The FTC also shares updates on social media channels and offers alerts for both consumers and businesses.

ORGANIZATIONS IN THIS STORY