This Attorney Counsels Companies on Internet Activities 

Lawyer advises on compliance with FTC online regulations 

The Federal Trade Commission plays a pivotal role in regulating e-commerce businesses in the U.S., ensuring fair practices that protect both consumers and businesses. Understanding the FTC’s enforcement policies and procedures can help you avoid civil penalties and potential restrictions on your business. At Andrew M. Jaffe, Attorney at Law, I counsel clients on all aspects of Internet law, including FTC regulations. I can provide the guidance you need to avoid the consequences of non-compliance so that you can concentrate on reaping the greatest rewards from your e-commerce venture.

The FTC’s goal of protecting businesses and consumers

The Federal Trade Commission is charged with promoting fair competition among businesses and protecting consumers from deceptive or unfair marketing practices. The FTC works to ensure transparency in e-commerce transactions and to safeguard consumer data. An example is the $5 billion fine imposed on Facebook in 2019 for privacy violations. The FTC protects consumers by addressing false advertising, data breaches or misleading privacy policies by setting and enforcing clear standards.

Internet laws enforced by the FTC

The FTC enforces several laws relating to e-commerce compliance, among them:

• Federal Trade Commission Act, Section 5 — This prohibits “unfair or deceptive acts or practices” in commerce. E-commerce businesses must ensure truthful advertising, accurate privacy policies, and robust data security. 
• CAN-SPAM Act — This regulates commercial emails, requiring clear sender identification, opt-out mechanisms and truthful subject lines. 
• Children’s Online Privacy Protection Act — COPPA protects children under 13 by requiring parental consent for data collection. Penalties are targeted at platforms with child-directed content, as in Google/YouTube’s $170 million fine in 2019.
• Restore Online Shoppers’ Confidence Act — ROSCA mandates clear disclosure of subscription terms and easy cancellation. The FTC fined MoviePass $400,000 in 2021 for deceptive subscription practices.
• Gramm-Leach-Bliley Act — This law requires financial data protection for e-commerce sites handling payments, and imposes fines for breaches.

These laws are designed to required e-commerce businesses to maintain transparency, secure data and respect consumer rights, aligning with global standards such as the EU’s General Data Protection Regulation (GDPR).

Consequences for ignoring FTC guidelines

Non-compliance with FTC guidelines can result in severe penalties and costs, such as:

• Fines — Financial sanctions vary by law. They can be up to $50,120 per violation under the FTC Act, $16,000 per email under CAN-SPAM and $43,280 per COPPA violation (as of 2025). 
• Injunctions and consent orders — Businesses may face operational restrictions or mandatory compliance programs. 
• Consumer redress — The FTC can order refunds or restitution.
• Reputational damage — Violations erode customer trust, reducing sales. 
• Legal costs — Defending FTC actions incurs high legal fees, compounding the financial strain.

I counsel my clients on the best practices for FTC compliance, which include:

• Clearly published privacy policies, detailing data use and opt-out options.
• State-of-the-art data security protocols
• Close marketing oversight, to ensure that those responsible for company communications are compliant

The global reach of the Internet enables small companies to engage with customers internationally but also exposes small companies to heavy consequences that can shutter a thriving business. Business owners operating under a sole proprietorship might place their personal assets at risk. Given that the cost of noncompliance is so high, no company should venture into e-commerce without the trustworthy advice of a knowledgeable Internet law attorney.

Contact a knowledgeable Internet attorney for FTC compliance

Andrew M. Jaffe, Attorney at Law in Fairlawn offers trustworthy guidance to keep e-commerce businesses of all sizes in compliance with FTC regulations. To schedule a consultation, call 330-845-6027 or contact my office through email at [email protected].