Twitter agrees to pay $150 million settlement over privacy violations

By Sakina Raj  | Date: 2022-05-27

Twitter agrees to pay $150 million settlement over privacy violations

Twitter Inc. has reportedly agreed to pay a settlement amount of $150 million against allegations that the social media platform misused private information like phone numbers to boost advertising, misleading the users into believing that the information was for security purposes.

As per the court documents, Twitter’s settlement is targeted to dissolve issues associated with misrepresentation of the ‘security and privacy’ of user data from May 2013 to September 2019.

Under the terms of settlement announced by the Justice Department & the Federal Trade Commission (FTC), the social networking platform will pay $150 million as monetary settlement and will have to improve its compliance practices.

The complaint quoting violation of the FTC Act and a 2011 settlement with Twitter highlighted the company’s failure to maintain transparency with the users, as it disguised the collection of phone numbers and email addresses to secure accounts.

However, Twitter did not disclose its users that the personal information was also being used to aid advertisers in reaching their desired audiences. The complaint also accuses Twitter of falsely guaranteeing compliance with the European Union-U.S. along with Swiss-U.S.

Imperative to note that, the company’s settlement has undergone years of fallout subject to privacy practices of technology companies.

Speaking on the settlement, Damien Kieran, Chief Privacy Officer at Twitter stated that the organization has aligned with the agency to work on operational updates and foresee program enhancements for better user privacy and security.

Essentially, Twitter is a free service platform that generates revenue mainly through advertising and has been scrutinized for its ads-driven business model by billionaire Elon Musk, who is eyeing to purchase the service for $44 billion and aims to diversify its revenue.

According to the U.S. officials, Twitter’s total revenue in 2019 was $3.4 billion, and nearly $3 billion of it was generated from advertising and went on to make a revenue of $5 billion In 2021.

Earlier this month, the networking company announced that it has earmarked $150 million after agreeing ‘in principle’ upon the settlement with the FTC.

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Sakina Raj

Sakina Raj

Armed with a degree in English Literature, Sakina chose to explore the world of content writing and pursue it as a career. Sakina has been playing with words for over five years now and currently pens down articles relating to diverse domains for BonafideNews and vari...

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