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Governance, Risk, Audit & Privacy · Intermediate

Federal Trade Commission Act Section 5

US law prohibiting unfair or deceptive acts or practices, the FTC's primary privacy and security enforcement authority.

Definition

The FTC uses Section 5 to act against companies that misrepresent privacy practices (deception) or fail to provide reasonable security causing substantial consumer injury (unfairness). Consent orders typically require comprehensive privacy or security programs and independent assessments for 20 years.

Example

The FTC charges a company that promised end-to-end encryption but did not implement it.

Exam tip

Breaking a published privacy promise is a deceptive practice.

Related terms