"Pervasive and aggressive marketing of violent movies, music and electronic games to children undermines the credibility of the industries' ratings and labels," the FTC report says.
The report was ordered by Mr Clinton after the shooting dead last year of 13 teenagers by two of their fellow students at the Columbine High School in Colorado.
It calls for an improvement in the self-regulated ratings system used by the film, music and games industries.
The film and video-game industries have voluntary age-based ratings while the music industry has a general label warning of adult or explicit content.
Ratings undermined
"Pervasive and aggressive marketing of violent movies, music and electronic games to children undermines the credibility of the industries' ratings and labels," the FTC report says.
"Such marketing also frustrates parents' attempts to make informed decisions about their children's exposure to violent content."
Clintons' backing
President Clinton, who has frequently expressed concern about violence in entertainment, urged the industries to halt the practices on their own.
"We've known now for 30 years through some 300 studies... that regular, persistent exposure of children at young ages to indiscriminate violence tends to make them less sensitive to the real and human impact of violence in their own lives," he said, speaking after the report's release.
Hillary Clinton said that, if elected to the senate, she would campaign for a uniform voluntary ratings system for all entertainment media.
The issue has already been raised during campaigning in America's presidential race.
Despite major donations from the entertainment industry to President Clinton and the democratic candidate to succeed him, Al Gore, Mr Gore's running-mate, Joseph Leiberman, is a leading critic of excessive sexual and violent content in entertainment.
Causes of violence
The report concludes that exposure to violence in the media alone "does not cause a child to commit a violent act, and that it is not the sole, or even necessarily the most important, factor contributing to youth aggression, anti-social attitudes and violence."
However, FTC chairman, Robert Pitofsky, said while violence in the media clearly had some effect on children.
Our correspondent in Washington says that the entertainment industry has defended itself by pointing to statistics that suggest America is becoming a less violent place, whatever politicians might say.