Rundown: FTC’s potential priorities for ad tech, data and AI 

Under the leadership of Andrew Ferguson, chairman of Federal Trade Commission, the agency could shift its focus from broad regulatory rule-making to targeted enforcement actions. 

However, some observers note that doesn’t mean the FTC’s new leadership will be totally soft on Big Tech. One indication: Ferguson’s recent picks for top agency positions as indication, including some with experience from President Donald Trump’s first administration.

  • Daniel Guarnera, named director of the Bureau of Competition, joins the FTC from the Justice Department’s antitrust division, where he filed monopolization lawsuits against Google and Apple. 
  • Lucas Croslow was appointed FTC General Counsel. Previously, he was deputy Solicitor General of Virginia.

Key differences in FTC regimes 

Ferguson, a Republican, became an FTC commissioner in 2024 after being appointed by then-President Joe Biden. Unlike former FTC Chair Lina Khan’s tenure, which pursued expansive rulemaking efforts to reshape antitrust and privacy regulations, Ferguson has emphasized that comprehensive privacy laws should be the domain of Congress.

Some expect his approach could prioritize addressing deceptive practices, fraud, consumer redress and select privacy concerns, signaling a recalibration of FTC priorities. Ferguson also voted against the FTC’s new Negative Option Rule, also known as “click-to-cancel,” which had been lobbied against by advertising and cable industry trade organizations including the IAB.

The FTC did not respond to Digiday’s request for comment before press time. However, here are some areas to follow with Ferguson as chair.

  • Targeting data brokers instead of targeted ads

The FTC could continue cracking down on businesses profiting from personal data without user consent. While targeted advertising itself might not be an issue, unregulated data collection, aggregation and sale – particularly regarding sensitive location data – will remain under scrutiny. This signals a heightened focus on ensuring data privacy from the outset.

In the past, Ferguson has been critical of online surveillance, but his opinions on how to address it are mixed. When the FTC announced a December enforcement action against data brokers Gravy Analytics and Mobilewalla, he concurred with parts but dissented against others.

“Commercial fairness might also require more than vague hidden disclosures,” Ferguson wrote. “Especially when the loss of privacy is substantial, as is the case with collection of precise location data and its sale to third parties.

  • AI oversight focused on deception

Unlike the previous administration’s push for broader AI regulation, Ferguson’s FTC will likely focus on enforcing existing laws against AI-driven fraud and deception. But he also cautioned against legal action against AI companies if there’s no evidence of them breaking any laws.

Last month, Ferguson voted to release the FTC’s new report on AI partnerships between tech giants and startups. In a partial dissent, he cautioned against regulating AI too quickly or risk new rules could “strangle this nascent technology in its cradle.” However, he also encouraged the commission to “remain a vigilant competition watchman, ensuring that Big Tech incumbents do not control AI innovators in order to blunt any potential competitive threats.”

  • Emphasized transparency

Transparency in data collection and use will remain a focal point — for both AI and data privacy. Last month, Ferguson and fellow Republican commissioner Melissa Holyoak dissented against the FTC’s report on surveillance pricing, describing the research as “publishing ‘ideas’ and ‘initial observations’ accompanied by hypothetical use cases.” However, Ferguson agrees the FTC’s research will help learn “whether and how consumers’ private data may be used to affect their pocketbooks,” but noted agency’s initial findings “are far from a comprehensive report.”

Related Insights
  • Protecting kids online

Child-focused privacy protections remain a bipartisan priority. The FTC could continue updating COPPA (Children’s Online Privacy Protection Act) and monitor pending legislative developments, such as The Kids Online Safety and Privacy Act (KOPSA). On the other hand, Ferguson opposes the FTC’s ongoing complaint against Snap Inc.’s My AI chatbot, which was recently referred to the U.S. Justice Department.

Political pivots

One former FTC described Ferguson as a savvy political operator who will likely align with the whims of the President: “He has structured everything so that he can pivot in whatever direction the big man [Trump] wants to pivot.” One early example is Ferguson’s new authority to comply with Trump’s executive order ending DEI initiatives across federal agencies.

No matter which way the political wind blows, it seems Ferguson’s ready to set up sails. His promotion to chair also comes with much more power than he had as commissioner. Agency chairs get to “call the shots,” including what to investigate and what to vote on, noted Megan Gray, an attorney and founder of GrayMatters Law & Policy.

“Those are decisions exclusively held by the chair,” said Gray, who spent years with the FTC’s bureau of consumer protection. “Who the other commissioners are is not ultimately as relevant as you might normally think. They’re not all equal. It’s not like the chair just knocks a gavel on a wooden desk to convene a meeting. He decides what the meeting is about, and that is a massive power.”

How the industry can adapt

Digiday sources, among them former FTC officials, noted how Ferguson’s stances even as FTC commissioner provide examples for how he could approach regulatory issues. Below are some key areas for industry practitioners to consider during Ferguson’s six-year term of office. 

Big Tech should still be wary

Despite Big Tech’s attempts to cozy up to Trump, there are signs the giants aren’t out of the woods in terms of regulatory action. Some say Ferguson might continue moving forward with existing antitrust cases, face more scrutiny around content-moderation and data-collection practices.

Reevaluate data partnerships and brokers

Given the FTC’s continued focus on data brokers, ad tech firms should scrutinize their data partnerships, ensuring that all collected and shared data comply with privacy laws and user consent requirements.

Prioritize privacy by design

With heightened scrutiny on data collection, businesses should proactively build privacy by design into their operations. This includes stronger consent mechanisms, clear opt-out options and responsible data governance.

Ensure AI transparency and compliance

Companies leveraging AI in advertising should ensure their models and outputs don’t mislead consumers. Ferguson’s recent endorsement of Trump’s choice for AI lead —former PayPal COO David Sacks — also could shed light on how the FTC might think about AI innovation, censorship and online bias.

– Ronan Shields contributed to this story

https://digiday.com/?p=568822

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