Under the new leadership, the FTC is signaling a pivot away from sweeping rulemaking efforts to let Congress play that role. Instead, the agency will likely stay laser-focused on enforcement actions.
Expect deceptive practices, fraud, consumer redress and select privacy concerns to take center stage.
While the agency has historically looked to Congress for federal privacy regulation, it’s been anything but idle. Recent years have seen a flurry of regulatory, policy and enforcement actions.
I have witnessed the hustle, creativity and focus of Lina Khan’s FTC firsthand, having served as White House Presidential Innovation Fellow. My role as a technologist and subject matter expert contributed to investigations, rulemaking and research in advertising and privacy.
Now with the change in administration, FTC priorities are expected to change. Andrew Ferguson, the potential new chair, puts it plainly: “My colleagues want the FTC Act to be a comprehensive privacy law. But it is not. Comprehensive privacy regulation involves difficult choices and expensive trade-offs. Congress alone can make those choices and trade-offs.”
As the FTC recalibrates its priorities and methodologies, several critical areas demand the attention of advertisers, publishers and tech platforms:
Data brokers and consent exploitation
The FTC will likely continue targeting businesses that profit from personal data without user consent, especially the sale of sensitive location data.
It’s less about targeted advertising itself and more about the unregulated collection, aggregation, sale and retention of consumer data that powers it. The new leadership believes regulatory efforts should protect consumer data privacy from the outset.
AI regulation
Expect a shift in how the FTC oversees AI technologies. Instead of aggressive oversight, the focus will be on AI practices aligned with the boundaries of Unfair or Deceptive Acts or Practices (UDAP).
Ferguson’s stance is clear: “When people use generative AI technology to lie, cheat and steal, the law should punish them no differently than if they use quill and parchment. But Congress has not given us the power to regulate AI.” Companies exploiting the media hype and consumer unfamiliarity with AI to deceive customers can still expect legal action.
Children’s privacy
Updates to COPPA (Children’s Online Privacy Protection Act) will continue, reflecting a growing focus on protecting younger users in digital environments. The Senate has also passed The Kids Online Safety and Privacy Act (KOPSA) but the House has yet to follow. Advertisers targeting this demographic need to stay vigilant.
Transparency and consent
The pressure on ad tech companies to prioritize consumer consent mechanisms and transparency in data use isn’t going anywhere. Meaningful opt-out options will remain a key regulatory demand.
Sensitive data collection
The FTC’s scrutiny of permissible data collection practices will likely sharpen, emphasizing user control. However, data retention policies might remain outside the direct scope of Section 5 enforcement.
What lies ahead?
Ferguson describes the current landscape as a “data privacy crisis,” fueled by Big Tech overreach and censorship concerns. As the FTC undergoes a leadership transition, a temporary slowdown could occur.
But once the dust settles, the agency may dial back its targeted enforcement efforts while maintaining bipartisan support on key issues like children’s privacy, data security and sensitive data protection.
For the ad tech industry, these shifts are significant.
Less rulemaking, more enforcement: While the regulatory environment might ease up slightly, don’t get too comfortable. Targeted actions against deceptive advertising practices and AI misuse are here to stay.
Children and sensitive data protections: Stricter and continuous enforcement in these areas could reshape how businesses approach ad targeting and consumer data management.
Staying vigilant
Ad industry stakeholders should keep an eye on enforcement trends and double down on transparency and privacy-first strategies. The road ahead is clear: Adapt or face the consequences.
By embracing these shifts now and staying proactively front-footed, businesses can better navigate the evolving regulatory landscape and emerge stronger in a privacy-conscious market.
“Data-Driven Thinking” is written by members of the media community and contains fresh ideas on the digital revolution in media.
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