our organization is registered in the United States. By registering the company in the US means, are we under the jurisdiction of the FTC? or is it something else? because we are planning to get the privacy shield certification. For that, it is mandatory to be subjected to the jurisdiction of FTC, but I don't know how to find our company's status. I am not familiar with US laws and regulations since I am new to this area.

1 Answer 1


The US Federal Trade Commission is responsible for the enforcement of certain US laws, particularly in the areas of anti-trust (monopolistic practices) and consumer protection.

The FTC itself, on its page "What the FTC Does" says:

The Federal Trade Commission enforces a variety of antitrust and consumer protection laws affecting virtually every area of commerce, with some exceptions concerning banks, insurance companies, non-profits, transportation and communications common carriers, air carriers, and some other entities. The agency leverages its resources and targets its enforcement efforts at practices that cause the greatest harm to consumers.

The basic statute enforced by the FTC, Section 5(a) of the FTC Act, empowers the agency to investigate and prevent unfair methods of competition, and unfair or deceptive acts or practices affecting commerce. This creates the Agency’s two primary missions: protecting competition and protecting consumers. The statute gives the FTC authority to seek relief for consumers, including injunctions and restitution, and in some instances to seek civil penalties from wrongdoers. The FTC has the ability to implement trade regulation rules defining with specificity acts or practices that are unfair or deceptive and the Commission can publish reports and make legislative recommendations to Congress about issues affecting the economy. The Commission enforces various antitrust laws under Section 5(a) of the FTC Act as well as the Clayton Act. The FTC monitors all its orders to ensure compliance.

Any organization or business that operates within the United States in fields covered by any FTC order is subject to its jurisdiction, whether it is "registered" or not. Businesses that deal with consumers will find a number of FTC regulations applying to their operations. Businesses that operate on a business-to-business basis, but do not have anything close to monopoly control of any industry will be less impacted.

The FTC does oversee some Federal privacy laws, including the Fair Credit Reporting Act (FCRA) and the Children's Online Privacy Protection Act (COPPA).

In short, it is what an organization does that makes it subject to various FTC regulations. Without knowing what an organization does, there is no way to know to what extent it will come under FTC regulations.

The EU-US Privacy Shield was declared invalid by the European Court of Justice (ECJ) on 16 July 2020 "on the grounds it did not provide adequate protections to EU citizens on government snooping". There will be no future certifications under it.

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