$250 million fine looms over Twitter

$250 million fine looms over Twitter
It seems that Twitter is in trouble once again. The company has battled privacy issues for the past few years, and now it finally may transform into financial repercussions. The Securities and Exchange Commission is looking into Twitter’s “use of phone number and/or email address data provided for safety and security purposes for targeted advertising during periods between 2013 and 2019,” Engadget reports. If found guilty, Twitter may have to pay a fine of up to $250 million.

Twitter acknowledged the issue in an official blog post: “We recently discovered that when you provided an email address or phone number for safety or security purposes (for example, two-factor authentication) this data may have inadvertently been used for advertising purposes, specifically in our Tailored Audiences and Partner Audiences advertising system.”

The company signed an agreement with the Federal Trade Commission on July 28th, 2020 that specifically prohibited Twitter from misleading “consumers about the extent to which it protects the security, privacy, and confidentiality” of their data and compels it to “establish and maintain a comprehensive information security program.” The fine for breaching this agreement is between $150 million and $250 million and, according to the Financial Times, Twitter has already set aside $150 million to cover the minimum amount.

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