Why Google’s YouTube Could Face Potential Lawsuit By US Trade Commission

The US Federal Trade Commission (FTC) is investigating whether Google-owned YouTube breached consumer protection laws by suspending users’ accounts and removing or demoting content.

The probe, which began last year, is now in its final stages, with the agency preparing a potential lawsuit, as per a report by Bloomberg (BBG).

YouTube has not been accused of wrongdoing, and the investigation could still conclude without enforcement action, the report said.

What Is Under FTC Scrutiny?

The FTC is examining whether YouTube followed its own stated policies when restricting users or their content.

A key question is whether users were led to believe they could publish certain material when signing up for the platform, only to have that content subsequently removed or their accounts suspended, as per the BBG report.

The investigation is being handled by lawyers in the FTC’s Bureau of Consumer Protection and has been led by bureau director Chris Mufarrige, it said, adding that some career staff privately disagreed with pursuing a case.

Why Is FTC Probing YouTube?

The inquiry centres on whether YouTube’s policies could amount to unfair or deceptive terms of service if they did not adequately explain how account suspensions, content removals and appeal rights would work.

The FTC began seeking public views on social media practices in February 2025, receiving more than 3,000 comments amid concerns that platforms could ban or demonetise content based on users’ affiliations or the material they posted.

FTC Chair Andrew Ferguson has publicly signalled interest in holding platforms accountable for representations they make about speech policies.

At an appearance in Aspen earlier this month, he said, “Whatever your policies are, you have to follow them. You can’t present one form of policy to consumers when they’re deciding whether to use your platform and then have a completely different one in practice,” according to the Bloomberg report.

Account Bans, Content Removal In Focus

The inquiry comes against a backdrop of high-profile moderation decisions by YouTube and other platforms.

They suspended Donald Trump and other political figures following the January 6, 2021 assault on the US Capitol; Trump’s YouTube account was restored in 2023.

YouTube has also removed content concerning Covid-19 and vaccines that it considered to violate its misinformation rules, the BBG report said.

What Happens Next?

There is limited precedent for using consumer protection or antitrust laws against platforms over content-removal decisions. Courts have generally given social media companies significant discretion over what users can post.

If the FTC files a case, YouTube could negotiate a settlement or contest the allegations in court.

Any settlement would require approval from the FTC’s two Republican commissioners, Ferguson and Mark Meador, per BBG.

The FTC has other matters involving Alphabet, including a probe into Google’s search advertising practices.

The agency has also investigated technology companies, including Alphabet, over AI chatbots aimed at children and teenagers.