FTC Act (Federal Trade Commission Act) compliance

The FTC Act grants the U.S. Federal Trade Commission (FTC) the authority to enforce fair business practices and protect consumer privacy. The Commission enforces even stricter regulations for sectors such as health, insurance, and finance. Also applying to organizations that develop mobile applications, the FTC Act ensures that businesses provide accurate and transparent information about data collection and protection.

FTC Act sections applying to mobile data

Section 5

Section 5 (15 U.S.C. § 45) prohibits unfair or deceptive acts or practices affecting commerce. It forms the legal foundation for the FTC’s authority to act against businesses that engage in deceptive or unfair practices involving mobile data, including misleading statements about data collection, use, or security.

Section 6

Section 6 (15 U.S.C. § 46) gives the FTC power to investigate and prevent unfair methods of competition and deceptive acts. It is frequently cited in privacy and data security enforcement cases.

How to comply

Becoming compliant with the FTC Act requires businesses to maintain visibility over how they collect, use, and secure personal data. All environments where data is stored or accessed, including mobile applications must be properly secured.

For mobile applications, compliance means monitoring all data manipulations carried out by the application. Application Security Testing and Compliance Audits provide this visibility, revealing how data is processed and whether it’s handled securely.

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