Social media site Twitter has been fined $150 m (£119m) by US authorities. According to the authorities, the firm collects users’ email addresses and phone numbers for security purposes but hands the data to advertisers.
Meanwhile, the social giant collects information ensuring the users keep their accounts safe. According to a settlement with the US Department of Justice and the Federal Trade Commission, the firm must protect the data and ensure the safety of the information.
User contact information to Aid advertisers
A court complaint filed by the DOJ said, ‘’ While Twitter represented to users that it collected their telephone numbers and email addresses to secure their accounts, Twitter failed to disclose that it also used user contact information to aid advertisers in reaching their preferred audiences.’’
Twitter allow advertisers to use the data to target specific groups, by matching telephone numbers and email addresses. According to the court document, it occurs between May 2013 and September 2019.
Meanwhile, the complaint said that the misrepresentations violated the FTC act and a 2011 settlement with the agency. The agreement also requires Twitter to make improvements in its compliance practices.
150m penalty on Twitter
Damien Kieran, Twitter’s Chief privacy officer said in a statement that the firm had ‘’ cooperated with the FTC every step of the way.’’ He added, ‘’ In reaching this settlement, we have paid a 150m penalty, and we have aligned with the agency on operational updates and program enhancements to ensure that people’s data remains secure and their privacy protected.’’
Twitter makes most of its earnings from advertising. Almost 90% of its annual revenue of 5bn comes from advertising. Meanwhile, Elon Musk who agreed to buy the company jumped on the FTC announcement. He said, ‘’ If Twitter was not truthful here, what else is not true? This is very concerning news.’’
Also, the FTC chair, Lina Khan, in a statement,’’ Twitter obtained data from users on the pretext of harnessing it for security purpose. Then ended up also using the data to target users with ads. This practice affected more than 140 million Twitter users while boosting Twitter’s primary source of revenue.’’