New Delhi: The Federal Trade Commission (FTC) and Justice Department have levied a hefty penalty of $150 billion on Twitter for misusing the account security data of its users for targeted advertising. Citing security reasons, the micro-blogging site had asked its users to provide their email addresses and mobile numbers to protect their accounts. The company has agreed to pay the penalty and settle the allegations that say it misrepresented the "security and privacy" of user data between May 2013 and September 2019.
"The Federal Trade Commission is taking action against Twitter, Inc. for deceptively using account security data for targeted advertising. Twitter asked users to give their phone numbers and email addresses to protect their accounts. The firm then profited by allowing advertisers to use this data to target specific users. Twitter’s deception violates a 2011 FTC order that explicitly prohibited the company from misrepresenting its privacy and security practices," the FTC wrote on its page.
Twitter must pay a $150 million penalty under the 2011 FTC order and is banned from profiting from its deceptively collected data, the agency added.
“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," FTC Chair Lina M. Khan, said in a statement.
“The Department of Justice is committed to protecting the privacy of consumers’ sensitive data,” said Associate Attorney General Vanita Gupta.
More than 140 million or 14 crore Twitter users were affected by this while Twitter’s primary source of revenue got a push from the collection and distribution of this data. According to a complaint filed by the Department of Justice on behalf of the FTC, earlier in 2013, Twitter started asking users to provide either a phone number or email address to improve account security.
“The $150 million penalty reflects the seriousness of the allegations against Twitter, and the substantial new compliance measures to be imposed as a result of today’s proposed settlement will help prevent further misleading tactics that threaten users’ privacy," Gupta added.
Micro-blogging site Twitter generates most of its revenue from advertising on its platform that lets users ranging from consumers to celebrities to corporations post 280-character tweets and messages.
“Consumers who share their private information have a right to know if that information is being used to help advertisers target customers,” said US Attorney Stephanie M. Hinds for the Northern District of California. “Social media companies that are not honest with consumers about how their personal information is being used will be held accountable.”