TechDigits

Tech news
Saturday, Apr 20, 2024

Twitter fined $150m in US for selling users' data

Twitter fined $150m in US for selling users' data

Twitter in the US must pay a $150m (£119m) fine after law enforcement officials accused it of illegally using users' data to help sell targeted ads.

The Federal Trade Commission (FTC) and the Department of Justice say Twitter violated an agreement it had with regulators, court documents showed.

Twitter had vowed to not give personal information like phone numbers and email addresses to advertisers.

Federal investigators say the social media company broke those rules.

Twitter was fined £400,000 in December 2020 for breaking Europe's GDPR data privacy rules.

The FTC is an independent agency of the US government whose mission is the enforcement of anti-trust law and the promotion of consumer protection.

It accuses Twitter of breaching a 2011 FTC order that explicitly prohibited the company from misrepresenting its privacy and security practices.


 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.

According to a complaint filed by the Department of Justice on behalf of the FTC, Twitter in 2013 began asking users to provide either a phone number or email address to improve account security.

"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 Lina Khan, who chairs the FTC.

"This practice affected more than 140 million Twitter users, while boosting Twitter's primary source of revenue."


Authentication violation


Ian Reynolds, managing director of computer security firm Secure Team, told the BBC: "Once again, Twitter is violating the trust that their users have in their platform by using their private information to their own advantage and increasing their own revenue."

He added: "Twitter led their customers into a false sense of security by acquiring their data through claiming it was for security purposes and protecting their account, but ultimately ended up using the data to target their users with ads.

"This reality shows the power that companies still have over your data and that there is a long way to go before users can be comfortable knowing that they have full control over their own digital footprint."

In order to authenticate an account, Twitter requires people to provide a telephone number and email address.

That information also helps people reset their passwords and unlock their accounts if required, as well as for enabling two-factor authentication.

Two-factor authentication provides an extra layer of security by sending a code to either a phone number or email address to help users log into Twitter along with a username and password.

But, according to the FTC, until at least September 2019, Twitter was also using that information to boost its advertising business.

It is accused of allowing advertisers access to users' security information.

In addition to the fine, Twitter must also:

*  stop using the phone numbers and email addresses it illegally collected  

*  notify users about its improper use of security information  

*  tell users about the FTC law enforcement action  

*  explain how to turn off personalised adverts and review multi-factor authentication settings  

*  provide multi-factor authentication options that do not need a phone number  

*  implement an enhanced privacy and security programme which includes reporting incidents to the FTC within 30 days

"The Department of Justice is committed to protecting the privacy of consumers' sensitive data," said Vanita Gupta, the US associate attorney general.

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


Newsletter

Related Articles

TechDigits
0:00
0:00
Close
FTX's Bankman-Fried headed for jail after judge revokes bail
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Musk announces Twitter name and logo change to X.com
The future of sports
TikTok Takes On Spotify And Apple, Launches Own Music Service
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
UK Crypto and Stablecoin Regulations Become Law as Royal Assent is Granted
A Delaware city wants to let businesses vote in its elections
Alef Aeronautics Achieves Historic Milestone with Flight Certification for World's First Flying Car
Google Blocked Access to Canadian News in Response to New Legislation
French Politicians Advocate for Pan-European Regulation on Social Media Influencers
Melinda French Gates Advocates for Increased Female Representation in AI to Prevent Bias
Snapchat+ gains 4 million paying subscribers in its first year
Apple Makes History as the First Public Company Valued at $3 Trillion
Elon Musk Implements Twitter Limits to Tackle Data Scraping, but Faces Criticism for Technical Misunderstanding
EU and UK's Slow Electric Vehicle Adoption Raises Questions About the Transition to Green Mobility
Top Companies Express Concerns Over Europe's Proposed AI Law, Citing Competitiveness and Investment Risks
Meta Unveils Insights on AI Usage in Facebook and Instagram, Amid Growing Calls for Transparency
Crypto Scams Against Seniors Soar by 78% in 2022, Experts Urge Vigilance
The End of an Era: National Geographic Dismisses Last of Its Staff Writers
Shield Your Wallet: The Perils of Wireless Credit Card Theft
Harvard Scientist Who Studies Honesty Accused Of Data Fraud, Put On Leave
Putting an End to the Subscription Snare: The Battle Against Unwitting Commitments
The Legal Perils of AI: Lawyer Faces Sanctions for Relying on Fictional Cases Generated by Chatbot
ChatGPT’s "Grandma Exploit": Ingenious Hack Exposes Loophole in AI, Generates Free Software Codes
The Disney Downturn: A Near Billion-Dollar Box Office Blow for the House of Mouse
A Digital Showdown: Canada Challenges Tech Giants with The Online News Act, Meta Strikes Back
Distress in the Depths: Submersible and Passengers Missing in Titanic Wreckage Expedition
Mark Zuckerberg stealing another idea: Twitter
European Union's AI Regulations Risk Self-Sabotage, Cautions smart and brave Venture Capitalist Joe Lonsdale
Nvidia GPUs are so hard to get that rich venture capitalists are buying them for the startups they invest in
Chinese car exports surge
Reddit Blackout: Thousands of Communities Protest "Ludicrous" Pricing Changes
Nvidia Joins Tech Giants as First Chipmaker to Reach $1 Trillion Valuation
AI ‘extinction’ should be same priority as nuclear war – experts
×