Twitter received bad news after the Federal Trade Commission fined it $150 million.
It was accused of selling users’ data improperly without their consent. The complaint filed by the Department of Justice (DOJ) on behalf of the Federal Trade Commission (FTC) said Twitter collected user information for “security purposes” and then sold it commercially.
“Twitter asked users for personal information for the express purpose of securing their accounts, but then also used it to serve targeted ads for Twitter’s financial benefit,” a business blog on the FTC’s website read. “It wasn’t Twitter’s first alleged violation of the FTC Act, but this one will cost the company $150 million in civil penalties.”
Twitter was the first to be found in violation of FTC Act 2011 following a complaint alleging that Twitter exploited users’ data for its own advantage.
The order that finalized the decision warned that Twitter Faced substantial fines if it lied about “the extent to which [Twitter] maintains and protects the security, privacy, confidentiality, or integrity of any nonpublic consumer information.”
Another similar complaint was filed alleging that users’ data were improperly used.
According to NPR, FTC chair Lina Khan said users were targeted with ads after Twitter sold user data originally claimed to be for “security purposes.”
“As the complaint notes, Twitter obtained data from users on the pretext of harnessing it for security purposes but then ended up also using the data to target users with ads,” she said per NPR.
NPR spoke with Sam Levine who is the leader of FTC’s Bureau of Consumer Protection. Levine said the platforms tactics were deliberately deceitful.
He said that if you tell people they’re using their numbers to protect their accounts and then use them for another purpose, then it’s deceiving them.
A Twitter spokesperson stated that Twitter had a resounding “Yes!” statement that user data “may have been inadvertently used for advertising” and the platform was now “aligned” with the FTC to “ensure that people’s personal data remains secure and their privacy protected.”
“[W]e have aligned with the agency on operational updates and program enhancements to ensure that people’s personal data remains secure and their privacy protected,” Twitter’s chief privacy officer, Damien Kieran, said.
“Moving forward, we will continue to make investments in this work, including building and evolving processes, implementing technical measures, and conducting regular auditing and reporting to ensure we are mitigating risk at every level and function at Twitter,” Kieran added. “We will also continue to partner with the FTC, and our security and privacy regulators around the world, on our shared mission of building useful products and services that meet our customers’ needs while keeping the information they share with us secure and respectful of their privacy.”
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