Home / Business / Twitter faces FTC investigation and possible $ 250 million fine

Twitter faces FTC investigation and possible $ 250 million fine

  • Twitter is under investigation by the FTC and could receive a fine of between 150 and 250 million dollars, the company revealed in a legislative application on Monday.
  • Twitter said the FTC reported allegations that it was misdirecting ads to users based on information they had provided for “safety and security purposes,” in violation of a 2011 agreement.
  • Twitter admitted last year that it “accidentally” targeted users with ads based on information they had provided to better secure their accounts.
  • The company’s integrity and security practices have come under renewed scrutiny after a major hack last month that resulted in dozens of high-profile accounts being compromised.
  • Visit the Business Insider website for more stories.

Twitter revealed in a legislative application on Monday that it is under investigation by the Federal Trade Commission related to allegations that it violated a 201

1 approval agreement – and that it expects a “likely loss” of somewhere between 150 and 250 million dollars.

“Following the announcement of our financial results in the second quarter, we received a draft complaint from the FTC regarding alleged violations of our consent order for 2011. Following standardized accounting rules, we included an estimated settlement interval in our 10Q filed on August 3,” he said. Twitter speaker Business Insider. An FTC spokesman declined to comment.

The FTC’s complaint specifically focuses on Twitter’s alleged use of “telephone numbers and / or email address information provided for security and safety purposes for targeted advertising during periods between 2013 and 2019,” according to the filing.

Twitter said in the application that it had set aside $ 150 million to cover a potential fine from the FTC, noting that “the issue remains unresolved and there can be no guarantee of the timing or conditions of any final outcome.”

In October last year, Twitter admitted that it had used phone numbers and emails – which users have uploaded with the intention of securing their accounts with two-factor authentication – to target them with ads. Twitter said the data had been used “unintentionally” and that they did not know how many had been affected.

In the complaint, the FTC claims that the incident violated Twitter’s agreement with the agency in 2011, which was part of a fee settlement that the company “deceived consumers and compromised their privacy by not protecting their personal information.”

As part of this solution, the FTC excluded Twitter “from misleading consumers about the extent to which it protects the security, integrity and confidentiality” of their private information, and it also required Twitter to implement a “comprehensive information security program” subject to independent review every two years.

Twitter is facing a re-examination of its security measures after a major hack last month in which employees were tricked into giving hackers access to internal tools that allowed them to hijack dozens of high-profile accounts including those of Barack Obama, Joe Biden, Elon Musk, Kanye West, Apple and Uber.

The hackers then used the accounts to orchestrate a cryptocurrency fraud that netted them at least $ 120,000. Three people have been arrested in connection with the incident.

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