FTC Warns Against Weakening Security for UK, EU Compliance

Published Date : 10/3/2025 

The U.S. Federal Trade Commission (FTC) has issued a warning to companies not to weaken their encryption or security measures to comply with foreign online safety laws, such as the UK’s Online Safety Act (OSA) and the EU’s Digital Services Act (DSA). 

The U.S. government is taking a strong stance against the new digital safety laws in Europe, particularly those concerning free speech. The government argues that these laws stifle the First Amendment rights of American companies. In a recent development, the Federal Trade Commission (FTC) has issued a warning that companies implementing policies to comply with foreign tech laws could be engaging in deceptive or unfair business practices.

A report from MLex cites comments from the chairman of the U.S. Federal Trade Commission (FTC), Andrew Ferguson, who states that weakening encryption or other security measures to comply with laws like the UK’s Online Safety Act (OSA) or the EU’s Digital Services Act (DSA) could violate Section 5 of the FTC Act.

According to Ferguson, if a company tells consumers that it encrypts or otherwise keeps secure online communications but adopts weaker security due to the actions of a foreign government, such conduct may deceive consumers who rightfully expect effective security, not increased susceptibility to breach or intercept desired by a foreign power.

The suggestion is that U.S. law offers better data protection than the EU or UK for tech giants like Apple, Amazon, Meta, and X. Given the current administration’s trends, it is most likely to be one of two things: a warning not to put foreign interests ahead of America’s, or a boastful slight aimed at the EU and UK.

Meanwhile, UK regulatory developments continue to impact violators. MediaLab, which owns image sharing site Imgur, has pulled the site from the UK after receiving notice that it faced an imminent fine from the Information Commissioner’s Office (ICO) over violations of the Children’s Code.

“From September 30, 2025, access to Imgur from the United Kingdom is no longer available,” states a notice on its website. “UK users will not be able to log in, view content, or upload images. Imgur content embedded on third-party sites will not display for UK users.”

According to The Register, the ICO’s interim executive director, Tim Capel, says its findings are provisional, and the ICO is willing to consider evidence before issuing a fine. However, he also notes that MediaMatters can be fined even if Imgur is no longer available to UK users: “We have been clear that exiting the UK does not allow an organization to avoid responsibility for any prior infringement of data protection law, and our investigation remains ongoing.”

In other news, UK-based eCommerce platform ShopWired has integrated OneID’s bank-based digital identity and age verification offerings. This integration means that merchants on ShopWired can now apply product-level age restrictions, marking individual items for automatic age checks during checkout.

Customizable settings allow merchants to enable an “always verify” option for stricter compliance, and comprehensive admin controls that allow merchants to manage and audit age verification and import and export verification details for reporting purposes.

“We are delighted to partner with ShopWired to deliver frictionless, bank-verified age checks at the point of purchase,” says Keith Mabbitt, Chief Commercial Officer at OneID. “This collaboration ensures merchants can comply with regulations while offering customers the simplest, most secure way to prove their age – without ever oversharing personal data.”

Ohio’s age assurance law for adult content is now in effect, and this means implementing age verification for adult content sites. Bluesky, a left-wing social media platform, has announced it will enable Kids Web Services (KWS) age verification in the state, according to the Columbus Dispatch.

Once Missouri’s law goes into effect later this year, half of all states in the U.S. will have enacted online safety laws with age verification requirements. 

Frequently Asked Questions (FAQS): 

Q: What is the main concern of the FTC regarding foreign online safety laws?

A: The FTC is concerned that companies might weaken their encryption or security measures to comply with foreign laws like the UK’s Online Safety Act (OSA) or the EU’s Digital Services Act (DSA), which could be seen as deceptive or unfair business practices.

Q: Why did Imgur pull its services from the UK?

A: Imgur pulled its services from the UK after receiving notice that it faced an imminent fine from the Information Commissioner’s Office (ICO) over violations of the Children’s Code.

Q: What is the new integration by ShopWired and OneID for?

A: ShopWired has integrated OneID’s bank-based digital identity and age verification offerings to allow merchants to apply product-level age restrictions and ensure compliance with regulations.

Q: How is Bluesky implementing age verification in Ohio?

A: Bluesky is enabling Kids Web Services (KWS) age verification in Ohio to comply with the state's age assurance law for adult content.

Q: What is the significance of Missouri's upcoming online safety law?

A: Once Missouri’s law goes into effect, half of all states in the U.S. will have enacted online safety laws with age verification requirements, significantly expanding the scope of these regulations. 

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