All regulations / US Consumers
FTC Act, Section 5
Know the rule before it knows you.
The US catch-all for privacy, security and AI claims.
What it is
Section 5 of the FTC Act prohibits unfair or deceptive practices in commerce. The FTC uses it to police privacy promises, data security failures, dark patterns, subscription traps, fake reviews and misleading AI claims, often through consent orders that bind companies for twenty years.
This applies to you if
- You market to US consumers, in any sector
- You make claims about AI capabilities, security or privacy
- You run subscriptions, free trials or reviews programmes in the US
What it asks of you
- Say what you do with data and do what you say
- Reasonable security proportionate to the data held
- Substantiate performance and AI claims; clear cancellation ('click to cancel') and honest reviews
What it costs to ignore
Consent orders, civil penalties for order violations and rule breaches, refunds and algorithm disgorgement.
Key dates
Ongoing; rules on fake reviews (2024) and negative-option subscriptions (2025) raised the bar.
How we help
Not sure which apply to you? Send us three lines about what you sell and to whom, and we will tell you which rules matter and which do not.
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