Twitter has been fined $150 million by the Federal Trade Commission (FTC) for ‘deceptively’ using account security data for targeted advertising.
The social media company profited from giving user data such as phone numbers and email addresses to advertisers.
The news comes just weeks after Elon Musk’s $44 billion takeover.
The deceptive data practice violates a 2011 FTC order that explicitly prohibited the company from misrepresenting its privacy and security practices.
“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,” FTC chair Lina Khan said.
“This practice affected more than 140 million Twitter users, while boosting Twitter’s primary source of revenue.”
READ MORE: Elon Musk halts Twitter takeover to assess fake spam accounts
The platform generates most of its revenue from advertising, but representatives failed to mention that it uses data and supplies it to brands and agencies. From 2014 to 2019, more than 140 million Twitter users provided their phone numbers or email addresses after the company told them this information would help secure their accounts.
US Associate Attorney General Vanita Gupta added: “The Department of Justice is committed to protecting the privacy of consumers’ sensitive data. The $150 million (£119.5 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.”
Musk has not commented on the commission’s fine as of yet.
US attorney Northern District of California Stephanie Hinds: “Consumers who share their private information have a right to know if that information is being used to help advertisers target customers. Social media companies that are not honest with consumers about how their personal information is being used will be held accountable.”
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