Twitter fined $150m for handing users’ contact details to advertisers
According to a settlement with the U.S. Department of Justice and the Federal Trade Commission, the social media platform had told users that the information would be used to keep their accounts secure. “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,” said a court complaint filed by the DoJ.
A stated in the court documents, the breaches occurred between May 2013 and September 2019, and the information was apparently used for purposes such as two-factor authentication. However, in addition to the above-mentioned purposes, Twitter used that data to allow advertisers to target specific groups of users by matching phone numbers and email addresses with advertisers’ own lists.
In addition to financial compensation, the settlement requires Twitter to improve its compliance practices. According to the complaint, the false disclosures violated FTC law and a 2011 settlement with the agency.
Twitter’s chief privacy officer, Damien Kieran, said in a statement that the company has “cooperated with the FTC at every step of the way.”
“In reaching this settlement, we have paid a $150m penalty, and we have aligned with the agency on operational updates and program enhancements to ensure that people’s personal data remains secure, and their privacy protected,” he added.
Twitter generates 90 percent of its $5 billion (£3.8 billion) in annual revenue from advertising.
The complaint also alleges that Twitter falsely claimed to comply with EU and U.S. privacy laws, as well as Swiss and U.S. privacy laws, which prohibit companies from using data in ways that consumers have not approved of.
The settlement with Twitter follows years of controversy over tech companies’ privacy practices. Revelations in 2018 that Facebook, the world’s largest social network, used phone numbers provided for two-factor authentication for advertising purposes enraged privacy advocates. Facebook, now Meta, also settled the matter with the FTC as part of a $5 billion settlement in 2019.
