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.