Twitter will pay $150 million to settle a lawsuit after it was caught using users’ phone numbers and email addresses for targeted ads. The company had agreed to settle with the Department of Justice (DOJ) and Federal Trade Commission (FTC).
Although, it is not clear how many users were affected and how (if) they would get a compensation from the pay. In addition to the fine, the company would allow its data privacy program to be audited.
The legal standing stemmed from the fact that there was an FTC Act and a 2011 settlement already when Twitter misrepresented its policies between 2013 and 2019.
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The company had deceptively encouraged users to add their phone number or email address to improve security. Masquerading as if it was offering measures like two-factor authentication, the company had other plans.
The details were entered into the company’s ad database and used them for targeted ads, likely profiting billions from the move. Although, after the case was blown open, Twitter issued an apology in 2019 saying:
“We recently discovered that when you provided an email address or phone number for safety or security purposes (for example, two-factor authentication) this data may have inadvertently been used for advertising purposes, specifically in our Tailored Audiences and Partner Audiences advertising system.
“We’re very sorry this happened and are taking steps to make sure we don’t make a mistake like this again.”
Associate Attorney General Vanita Gupta says that the fine was to show the seriousness of the crime and discourage any future reoccurrence. Meanwhile, Twitter chief privacy officer Damien Kieran admitted that the settlement reflects the company’s commitment and investment in security and privacy.
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