Twitter now settles with federal regulators over the use of user privacy for $150 million.
The Federal Trade Commission (FTC) and the Department of Justice said that the platform violated a 2011 agreement with regulators. In the court documents, it showed Twitted vowed to not sell information gathered for security purposes, such as users' phone numbers and email addresses to advertisers.
However, federal investigators say the social media platform broke that promise. According to FTC Chair Lina Khan, "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."
The terms of the proposed agreement state that Twitter agreed to stop profiting from information gathered for security purposes. This will still need the cour's approval, but it will also limit Twitter employees' access to users' personal data.
Also Read: Twitter's New Privacy Policy Rolls Out | Web Game Tries to Explain Changes to its Users
What Happened
To authenticate accounts on Twitter, the platform asks users to provide a telephone number and email address. Furthermore, this information helps people reset their passwords and unlock their accounts when Twitter blocks logging in because of suspicious activity.
However, in September 2019, the platform started using that information to boost its advertising business. As a result, this breaks its agreement with regulators.
Damier Kieran, Twitter's chief privacy officer said in a blog post that the personal information of users "may have been inadvertently used for advertising." Kieran said the company is no longer selling information to advertisers.
"Keeping data secure and respective privacy is something we take extremely seriously, and we have cooperated with the FTC every step of the way."
In the State of Crisis
Since Tesla CEO Elon Musk took over the platform for $44 billion, the social media site has been in a state of crisis. There have been rumors that Musk will back out of the deal, especially when he declared that the deal is temporarily on hold for the reason that he said he should first determine how widespread bot accounts are on the platform.
The question is, will Musk be able to pull the plug on the deal? According to corporate merger experts and members of Twitter's chief executive, the deal is still pushing through because Musk has signed a legally binding contract with the company pending shareholder and regulatory review.
Just recently, a new filing shows that Musk plans to front #33.5 billion in his bid to take over the platform. Musk is currently in talks with the founder and former CEO Jack Dorsey and others to help finance or roll their shares over, to complete the deal.
Also, a letter to investors shows that Musk is working to take Twitter private.
Related article: Jack Dorsey Quashed Rumors About Being Twitter's CEO, Says 'No One Ultimately' Should Be
This article is owned by TechTimes
Written by April Fowell
