George McNamara, head of policy and public affairs at the Alzheimer's Society, said:
These findings point to a worrying lack of awareness and understanding of the use of DoLS.
It is unacceptable that the majority of care providers are not following correct procedure when using this measure.
Over half the applications were for someone with dementia and much more needs to be done across health and social care to ensure DoLS are better understood and implemented consistently, ensuring the best possible quality of care and support.
It is essential that the CQC continue to monitor its use to protect those most vulnerable in society.
Care and support minister Norman Lamb said: "People in hospitals and care homes deserve to be fully protected at all times, particularly when they need to be deprived of their liberty in their own best interests.
"This increase shows that more assessments are being carried out when they should be to safeguard people and protect their rights.
"Yet there is a long way to go before these provisions are fully used.
"The bottom line is that to deprive someone who lacks capacity of their liberty without a DoLS in place is unlawful and needs to be treated extremely seriously."
The report said two-thirds of care homes and hospitals who make applications break the law by failing to notify the CQC of outcomes or applications.
The CQC said this contrasted sharply with people aged 18 to 65 for which the rate has increased much less over the period and fell slightly last year.
Deprivation of Liberty Safeguards, which apply in England and Wales, are intended to ensure that a care home or hospital only deprives someone of their liberty in a safe and correct way when they lack mental capacity.
They should only be applied when it is in the best interests of the person. Deprivation could include restraint, medication given against a patients will, staff having complete control over a patient's care or movements and staff making all decisions about a patient.