FTC issues updated guidance on data security and algorithmic accountability

The U.S. Federal Trade Commission (FTC) published updated guidance clarifying how existing consumer protection and privacy principles apply to data security and the use of automated decision-making systems. The update reiterates that companies deploying algorithms, analytics, or AI tools remain fully responsible for how personal data is collected, processed, and protected.

The FTC emphasized that organizations must take reasonable steps to secure personal data, assess risks associated with automated processing, and ensure transparency when automated systems have a material impact on consumers. The guidance also highlights the need for ongoing monitoring, documentation, and internal accountability, particularly where large datasets or sensitive information are involved.

While not a new federal privacy law, the update signals continued enforcement focus by the FTC and reinforces that privacy, security, and algorithmic governance obligations fall squarely within existing U.S. regulatory frameworks.