Elon Musk's X is attempting to escape a 20-year data-privacy order from the FTC, which includes regular independent audits. The order stems from a 2019 incident where Twitter accidentally used two-factor authentication data for targeted advertising, leading to a $150 million settlement.
The outcome of X's attempt to avoid FTC audits will set a precedent for how regulatory oversight of data privacy is applied to major social media platforms under new ownership, potentially impacting user trust and future data handling practices.
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.
Pick the topics you care about. Get only what matters, on your cadence.