“This practice affected more than 140 million Twitter users, while boosting Twitter’s primary source of revenue,” FTC Chair Lina Khan mentioned in a press release.
Twitter mentioned Wednesday that using the private information for adverts was “inadvertent,” and that the incident was first disclosed in 2019.
In its alleged misconduct, Twitter solely ever informed customers that their telephone numbers and e mail addresses have been getting used for account safety functions, however failed to point out promoting, in accordance to a replica of the criticism seen by CNN.
“From at least May 2013 until at least September 2019, Twitter misrepresented to users of its online communication service the extent to which it maintained and protected the security and privacy of their nonpublic contact information,” the criticism mentioned.
“Twitter’s misrepresentations violate the FTC Act and the 2011 Order, which specifically prohibits the company from making misrepresentations regarding the security of nonpublic consumer information,” the criticism mentioned.
In addition to the $150 million penalty, the brand new proposed settlement between Twitter and the FTC to settle Wednesday’s allegations additionally bars the corporate from profiting off of what the FTC described as “deceptively collected data” and to permit for consumer authentication strategies aside from telephone numbers, resembling multi-factor authentication apps. The firm may also be required to inform customers about its failure to disclose its alleged apply of utilizing contact information for promoting functions.
Wednesday’s settlement should nonetheless be authorised by the court docket.