FTC charges Twitter with deceptively using data to sell

Washington, May 27, 2022 (Online): Federation of Trade Commission and Department of Justice have order Twitter to Pay $150 Million Penalty for Violating 2011 FTC Order and Cease Profiting from Deceptively Collected Data.

Issuing a press release FTC informed media that the Commission is taking action against Twitter, Inc. for deceptively using account security data for targeted advertising.

Twitter asked users to give their phone numbers and email addresses to protect their accounts. The firm then profited by allowing advertisers to use this data to target specific users.

Twitter’s deception violates a 2011 FTC order that explicitly prohibited the company from misrepresenting its privacy and security practices.

Under the proposed order, Twitter must pay a $150 million penalty and is banned from profiting from its deceptively collected data.

“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,” said FTC Chair Lina M. Khan. “This practice affected more than 140 million Twitter users, while boosting Twitter’s primary source of revenue.”

“The Department of Justice is committed to protecting the privacy of consumers’ sensitive data,” said Associate Attorney General Vanita Gupta.

“The $150 million penalty reflects the seriousness of the allegations against Twitter, and the substantial new compliance measures to be imposed as a result of today’s proposed settlement will help prevent further misleading tactics that threaten users’ privacy.”

“Consumers who share their private information have a right to know if that information is being used to help advertisers target customers,” said U.S. Attorney Stephanie M. Hinds for the Northern District of California.

“Social media companies that are not honest with consumers about how their personal information is being used will be held accountable.”

California-based Twitter generates most of its revenue from advertising on its platform, which allows users ranging from consumers to celebrities to corporations to post 280-character messages, or tweets.