According to court documents, the settlement covers allegations that Twitter misrepresented the user data security and privacy policies of its users between May 2013 and September 2019. Under the agreement, Twitter’s legal compliance practices must also be improved.
company It will pay $150 million as part of an agreement announced by the Department of Justice and the Federal Trade Commission (FTC). In addition to the monetary agreement, the agreement requires Twitter to improve its compliance practices.
“While Twitter required users to collect their phone numbers and email addresses to keep their accounts secure, Twitter failed to disclose that it also used users’ contact information to help advertisers reach the desired audience.” – He stands to complain.
Twitter is a free service that primarily makes money from ads. Billionaire Elon Musk who He plans to buy the service for $44 billioncriticized the advertising-driven business model and promised to diversify its revenue sources.
Commenting on the social media company’s advertising practices and fines, Musk wrote in a tweet late last night: “If Twitter isn’t being honest here, what isn’t true yet? This is very disturbing news.”
US officials said that Twitter generated about $3 billion of its $3.4 billion in revenue in 2019.
company in 2021 It has generated $5 billion in revenue. And in a statement earlier this month, he said he had set aside $150 million after agreeing “in principle” with the Federal Trade Commission on the penalty.
The complaint also alleges that Twitter erroneously claimed to have complied with the Framework for Data Protection Agreements between the European Union and the United States and Switzerland and the United States (the “Shield”), which prohibit companies from using data in a way that consumers have not given permission.
Facebook already had similar cases in 2018, when phone numbers provided for two-factor authentication, like Twitter, were used to increase the effectiveness of targeted advertising. For this reason, the social media giant has agreed with the Federal Trade Commission to pay $5 billion in 2019.
(Reuters)
Cover image source: Getty Images
