FTC Chair Ferguson Warns 13 Tech Firms: Weakened Encryption Threatens American Freedoms and Data Security

Federal Trade Commission (FTC) Chair Andrew Ferguson has issued a direct warning to 13 major technology companies, urging them to resist demands from foreign governments that could compromise end-to-end encryption and lead to censorship. The announcement, made on Thursday, highlights deep concerns that such concessions would significantly erode Americans' fundamental freedoms and expose them to severe risks, including increased surveillance by foreign entities and heightened vulnerability to identity theft and fraud.

Ferguson's letters were dispatched to a wide array of prominent tech firms, including Akamai, Alphabet, Amazon, Apple, Cloudflare, Discord, GoDaddy, Meta, Microsoft, Signal, Snap, Slack, and X. He specifically cited foreign legislative measures such as the European Union's Digital Services Act and the United Kingdom's Online Safety Act, which he argues incentivize U.S. tech companies to implement policies that could result in censoring speech or weakening data privacy for users, even those outside Europe.

The core of Ferguson's concern is the potential for widespread harm to American consumers. > "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," Chair Ferguson stated in his communication. He further elaborated that if a company explicitly promises consumers robust online security and encryption, but then compromises these protections due to foreign governmental demands, such conduct could constitute a deceptive practice under the FTC Act, potentially leading to enforcement actions.

This proactive stance by the FTC comes amidst ongoing international debates regarding data sovereignty and digital rights. The warning follows a recent development where the U.S. government reportedly succeeded in persuading UK leaders to withdraw a demand for Apple to provide law enforcement access to encrypted user cloud data. Ferguson's strong message reinforces the agency's commitment to safeguarding consumer data privacy and upholding free speech principles, emphasizing that tech companies must prioritize the security and rights of their American users above compliance with restrictive foreign mandates.