Final answer:
The Federal Trade Commission (FTC) is the U.S. government agency tasked with protecting American consumers' privacy, enforcing privacy laws like COPPA, and working with the FCC to defend against internet scams.
Step-by-step explanation:
The U.S. government agency that is primarily tasked with protecting the privacy of American consumers is the Federal Trade Commission (FTC). This agency handles various aspects of consumer protection and ensures that private companies adhere to laws regulating the storage and use of personal cyber data. One notable law is the Children's Online Privacy Protection Act of 1998 (COPPA), which allows parents to manage the information that websites can collect about their children.
In addition, the FTC also collaborates with the Federal Communications Commission (FCC) to safeguard consumers from internet scams and deceptive online trade practices. Wariness over the balance between privacy rights and government access to personal digital information under the guise of national security amplifies the importance of the FTC's role in protecting consumer data.