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Elon Musk seeks to avoid FTC data audits at X

Created at 5 Jun · 1:04 AM1 source↑ Market-relevant
IN SHORT

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.

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Key Numbers

20 yearsduration of FTC data use restrictions
2013 to 2019period of coding error
$150 millionsettlement paid by Twitter
2042year FTC monitoring ends

Who's Involved

Elon Musk
Owner of X, attempting to escape FTC data audits
X (formerly Twitter)
Social media platform subject to FTC data privacy order
Federal Trade Commission (FTC)
US agency imposing data privacy order and audits on X

↳ Why This Matters

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.

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.

Frequently asked questions

The FTC order restricts X's data use for 20 years, requires independent audits, and grants the agency authority to request documents to ensure compliance with data privacy regulations.

The order was imposed after Twitter disclosed that a coding error between 2013 and 2019 allowed phone numbers and email addresses used for two-factor authentication to be used for targeted advertising.

Twitter agreed to pay a $150 million settlement and accept FTC monitoring until 2042 to protect user privacy.

Elon Musk, the owner of X (formerly Twitter), is attempting to escape the FTC's data handling audits.

What Happens Next

01Court ruling on X's attempt to escape FTC data audits.

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Cadence

How It Developed

4 Jun · 7:49 PM
Elon Musk's X is seeking to avoid FTC audits of its data handling, stemming from a 2022 settlement over privacy violations.
Ars Technica via PiQSuite

Sources

T1
Elon Musk tries again to escape FTC audits of X data handlingm.piqsuite.com

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