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Twitter was alleged for misrepresenting the Security and Privacy of user data for the past several years. The social platform has now agreed to pay $150 million over allegations after a settlement with regulators. Twitter asked its platform users between May 2013 and September 2019 for personal information to secure their accounts.

However, the US Department of Justice and the FTC said Twitter used the collected information to target users with ads. It wasn’t the first alleged violation of the FTC Act. The social media platform settled with FTC in 2011. The platform was alleged of critical loopholes in its data security. It enabled hackers to get unlawful control of the platform.

The order blocked Twitter from misinterpreting while maintaining information such as collected users’ phone numbers and addresses. The punishment was announced on Thursday, May 26. Twitter warned investors in August 2020 about experiencing FTC scrutiny and a fine. The platform was expecting a bigger penalty for both its 2011 settlement and the FTC Act.

Twitter allegedly used User’s Personal Data for Ads

Moreover, the DOJ filed a complaint on behalf of the FTC. It says Twitter collected users’ telephone numbers and email addresses to secure their accounts. But the social platform was allegedly involved in using those collected data to support advertisers in targeting their suitable audiences. The complaint also said users provided their personal information based on Twitter’s crooked statements.

Twitter collected information for account security purposes, such as 2-step verifications. It significantly boosted the primary source of revenue for the social platform, but the action affected over 140 million Twitter users. However, the recent agreement also asked Twitter to uplift its submission practices. The dispute started with the 2010 complaint from the FTC against Twitter.

Twitter violated the FTC Act

Moreover, FTC 101 says companies can’t inform consumers about using their personal information for one purpose than using it for another. Twitter collected personal information of users expressing to secure their accounts. But the social platform used collected data to serve anticipated ads for enhancing the financial benefits of the company.

Keep in mind that it wasn’t the first Twitter violation of the FTC Act. But this will alone cost the social platform $150 million in civil disciplines. The FTC said Twitter didn’t take perfect measures to confirm users’ choices. The 2010 complaint pointed out various patterns of Twitter’s actions in providing unauthorized access to the personal information of its users.

New Order includes More Requirements

Moreover, the new order includes more requirements to secure its consumers in the future.

• Twitter is banned from using collected email addresses and phone numbers to serve ads.
• The company must inform users about its inappropriate use of their personal information.
• The platform must tell them about law enforcement action from the FTC.
• The social platform should explain how users can turn off personalized ads and review multi-factor settings related to authorization.
• The social media platform must offer multi-factor authorization options without asking for a phone number.
• Twitter should adopt an improved privacy program and boost security program information.
• The security program of Twitter must include various new requirements mentioned in the order.
• FTC approved independent 3rd party assessments of privacy and security are essential.
• The company must report security and privacy incidents within 30 days to the FTC.