Connect with us

Social Media

United States Federal Trade Commission Fines Twitter $150 Million Over Privacy, Security Violations

Published

on

Twitter - Investor sking

The United States Federal Trade Commission (FTC) has ordered Twitter Incorporation to pay a sum of $150m as a fine for violating the 2011 administrative order of the Commission over its decision to use the email addresses and phone numbers of its users for targeted advertising.

The suit noted that the misrepresentations violated the FTC Act. Therefore, the commission and Twitter agreed to a settlement of $150 million after Twitter had earlier told users that the data was gathered for security purposes.

Checks by Investors King show the verdict was announced by the U.S Department of Justice (DoJ) on Wednesday.  The US DoJ in its 20-page count filed in the US District Court alleged that Twitter asked users for their contact information to make their accounts more secure. The social media giant failed to tell users that it would also use their phone numbers and email addresses to help companies send targeted ads to them.

“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 Khan accused.

Khan further said the practice affected more than 140 million Twitter users while boosting Twitter’s primary source of revenue.

The 2011 FTC order stated that Twitter “engaged in deceptive acts or practices” by misrepresenting how it handled user data and that the company lacked reasonable safeguards to keep accounts and data secure. Additionally, the order barred Twitter from misrepresenting “the extent to which [it] maintains and protects the security, privacy, confidentiality, or integrity of any nonpublic consumer information,” the order read in part.

Twitter’s settlement covers allegations that it misrepresented the “security and privacy” of user data between May 2013 and September 2019, according to the court documents.

In addition to the monetary settlement, the agreement requires Twitter to improve its compliance practices,” according to the statement of order.

According to the complaint issued, “Specifically, while Twitter represented to users that it collected their telephone numbers and email addresses to secure their accounts, Twitter failed to disclose that it also used user contact information to aid advertisers in reaching their preferred audiences.”

Twitter is a free service that generates its revenue majorly through advertising

The company generated $5bn in revenue in 2021 and said in a filing earlier in May that it had put aside $150m after agreeing” in principle” upon a sanction by the FTC.

 

Continue Reading
Comments

Social Media

Tesla CEO Elon Musk Given 22 Days Ultimatum by A U.S Court to Acquire Twitter

Following Elon Musk’s decision to opt-out of the $44 billion Twitter acquisition deal, a Delaware Court of Chancery in the United States has ordered the Tesla CEO to acquire the micro-blogging platform within 22 days.

Published

on

Twitter - Investor sking

Following Elon Musk’s decision to opt-out of the $44 billion Twitter acquisition deal, a Delaware Court of Chancery in the United States has ordered the Tesla CEO to acquire the micro-blogging platform within 22 days.

The judge presiding over the case made the order following Musk’s decision to proceed with the acquisition of the social networking company 12 days before the court trial on the lawsuit Twitter filed against him. 

Musk had earlier opted out of the Twitter deal where he accused the platform of thwarting his information rights by not providing enough data on fake accounts on the platform.

Musk claimed in a tweet that Twitter is “20% fake/spam accounts” and suggested Twitter’s filings with the Securities and Exchange Commission were misleading.  The company had earlier disclosed that only less than 5% of its daily active users are spam accounts.

However, the Tesla CEO wasn’t convinced by the number of bots accounts twitter claimed were on the platform. He, therefore, insisted that his acquisition of the social media company cannot move forward until he sees more information about the prevalence of spam accounts.

It should be recalled that on May 27, 2022 Investors King reported that

Twitter also displeased by Musk’s action filed a lawsuit in the Delaware Court of Chancery, urging him to complete his $44 billion takeover of the social media company where it accused him of “outlandish” and “bad faith” actions that have caused the platform irreparable harm and “wreaked havoc” on its stock price.

Recently, during a court hearing after the judge at the Delaware court had given Musk a 22 days ultimatum, he asked that Twitter drop the initial lawsuit scheduled for October 17, but the social media company insisted that it would keep the litigation alive until the deal was concluded.

Musk had made the request stating that the lawsuit should be stepped down to enable him to raise the needed capital for the acquisition ahead of the October 28 deadline.

Continue Reading

Social Media

World Richest Man, Elon Musk Offers $44 Billion to Close Twitter Deal

Tesla CEO and the world’s richest man, Elon Musk has offered to buy Twitter at the original price of $44 billion. 

Published

on

Elon Musk and Twitter

Tesla CEO and the world’s richest man, Elon Musk has offered to buy Twitter at the original price of $44 billion. 

Microblog platform Twitter has confirmed that Elon Musk has offered to close his $44 billion deal to buy Twitter Inc. on the terms he originally agreed to.

This is coming two months after the world’s richest man had initially pulled out of the deal. He alleged some inconsistency in the number presented to him.

He alleged that the company lied about the number of bots and spam accounts on its platform.

Investors King learnt that Elon Musk’s deal to buy Twitter Inc. has been on a wild ride during the past six months. 

On the 4th of April, Elon Musk disclosed a 9 percent stake in Twitter. Ten days after, he made a bid to buy Twitter at a share price of $54.20. He threaten to sell his stake in Twitter if the company rebuffed his offer. 

On the 21st of April, Elon Musk disclosed that he had lined up a $46.5 billion package to finance his bid for Twitter. 

In May, Musk tweeted that the deal was “temporarily on hold” because of concerns he had about fake accounts on the platform, prompting Twitter’s shares to fall 10 percent.

He further stated that he would not move on with the deal until Twitter was clearer about how many of its accounts were fake. 

On the 8th of July, he officially aim to terminate the deal, alleging that Twitter did not provide significant information about the fake accounts. 

In reaction to the termination, Twitter sued Elon Musk and tried to force him to honour the term of the agreement. 

However, his recent decision to go ahead with the deal will be a big win for the social media platform. 

Already Twitter’s share price has spiked by more than 20 percent after the news. A check by our correspondent shows that Twitter’s share price is trading above $50 as of the time of this report. 

Continue Reading

Social Media

Nigerian Government Sue Facebook And Instagram; Seeks N30 Billion as Penalty

the Advertising Regulatory Council of Nigeria says it has lodged a suit against Meta. 

Published

on

Facebook Meta

An agency of the Nigerian government, the Advertising Regulatory Council of Nigeria says it has lodged a suit against Meta. 

Investors King learnt that the Advertising Regulatory Council of Nigeria (ARCON)  is seeking a penalty of N30 billion against Meta in a suit filed at the Federal High Court in Abuja. 

Meta is the parent company of Facebook, Instagram and WhatsApp. American billionaire Mark Zuckerberg has a majority stack in the company. 

ARCON claimed that both Facebook and Instagram displaced unapproved advertisements to Nigerian audiences. 

The advertisement regulatory agency further stated that the actions have caused a loss of revenue for the Nigerian Government. 

ARCON stated that “the continued publication and exposure of various advertisements directed at the Nigerian market through Facebook and Instagram platforms by Meta Platforms Incorporated without ensuring the same is vetted and approved before exposure is illegal, unlawful and a violation of the extant advertising Law in Nigeria”. 

It also stated that the council will not permit unethical and irresponsible advertising in Nigeria’s advertising space. 

Meta’s agent, AT3 Resources Limited was also joint in the suit. However, the court has not fit a date for the suit.

If the court rules in favour of ARCON, it will change the face of social media advertising in Nigeria. 

ACORN further clarified that the council is not regulating the online media space. Rather, its focus is on advertising and marketing communications on the online platforms in line with its establishment Act.

The Advertising Regulatory Council of Nigeria (ARCON) has the government mandate to oversee, approve or disapprove any advertisement in the Nigerian public space. It also has the statutory mandate to generate revenue for the government through public advertisements. 

Continue Reading
Advertisement
Advertisement




Advertisement
Advertisement
Advertisement

Trending