Key facts
- Elon Musk's X is attempting to avoid FTC data audits.
- An FTC order restricts X's data use for 20 years and requires independent audits.
- The order followed an incident where Twitter used two-factor authentication data for advertising.
- Twitter paid a $150 million settlement in 2022 before Musk's takeover.
- The FTC will monitor X's data practices until 2042.
Elon Musk's company X is reportedly seeking to escape a strict data-privacy order imposed by the Federal Trade Commission (FTC) shortly before his takeover of Twitter. The FTC order, which is set to last for 20 years, restricts X's data usage and mandates regular independent audits, while also granting the agency the authority to request documents to ensure compliance.
This action by the FTC stems from a 2019 incident where Twitter disclosed that a coding error had inadvertently allowed phone numbers and email addresses, originally provided by users for two-factor authentication, to be used for targeted advertising. As part of a settlement finalized just months before Musk's acquisition in 2022, Twitter agreed to pay $150 million and accept FTC oversight of its data-handling practices until 2042 to safeguard user privacy.