Twitter has recently informed that the Federal Trade Commission (FTC) may soon impose a fine of nearly $250 million on the social media platform. The reason for these impositions is improper use of users’ phone numbers and email addresses. The penalties would come as a result of violations prompted by Twitter as the platform broke the 2011 agreement with the FTC to no longer deceive consumers about how it protects their personal information.
FTC Imposes a $250 Dollars Fine on Twitter
Between 2013 and 2019, the platform used contact numbers and email addresses provided “for safety and security purposes” to help target ads. Twitter abandon the practice on Oct 19, stating that it was done “inadvertently” and called it “an error.” The FTC supposes that the platform misguided consumers by not revealing that their personal data may have been utilized in this way.
The authorities at Twitter informed that the commission sent a draft complaint on July 28th, reporting alleged violations of the 2011 agreement. According to the estimations, the platform told that it could be fined between $150 million to $250 million. Twitter quoted in its 10-Q filing with the Securities and Exchange Commission,
The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome.
In addition to that, a spokesperson told that the company “included an estimated range for settlement” in the 10-Q filed because the complaint was reported after its quarterly results were filed on July 23rd.