In Might 2022, simply months earlier than Elon Musk acquired Twitter (now X), the Federal Commerce Fee (FTC) hit the platform with a $150 million tremendous and consent decree that imposed stipulations for safeguarding customers’ private knowledge. The ruling was imposed after the FTC discovered that Twitter had violated a earlier consent decree by inappropriately sharing consumer cellphone numbers and e-mail addresses with advertisers.
After buying Twitter, Elon Musk went to court docket in an try and overturn that consent decree, arguing that the FTC had elevated scrutiny on X and pressured a third-party assessor to search out fault with its safety practices. In a submit on X on the time, Musk known as the FTC’s actions “a shameful case of weaponization of a authorities company for political functions and suppression of the reality.”
Nonetheless, a federal decide simply rejected that movement, ruling that his court docket lacked the authority to dam the FTC’s court docket order, whereas additionally blocking Musk’s request to keep away from a deposition that is a part of a separate investigation, The Washington Publish reported. In different phrases, X should nonetheless adhere to the strict privateness reporting requirements imposed by the FTC final yr.
The decide listed different points with X’s argument, noting that the FTC had good cause to extend scrutiny on X after Musk took over. “The federal government says this enhance in investigative exercise shouldn’t be stunning as a result of Musk directed a minimum of 5 rounds of terminations, layoffs or different reductions in X Corp.’s workforce, which affected the safety, governance, danger and compliance workforce,” he wrote within the ruling.
He added that the third-party assessor mentioned he confronted regular delays because of govt turnover at X. Lastly, the decide dominated that Musk cannot keep away from being deposed by the FTC, as “the federal government argues that the most important modifications to the corporate seem to have been initiated by Musk himself.”
Musk’s FTC issues began shortly after his acquisition of X, when key executives on Twitter’s privateness and safety groups departed. Nonetheless, Musk appeared prepared to adjust to the principles, telling workers on the time that “Twitter will do no matter it takes to stick to each the letter and spirit of the FTC consent decree.”
Again in March, although, the FTC stepped up its probe into Musk’s actions in an effort to get extra details about the corporate’s dealing with of layoffs, X Premium subscriptions, the “Twitter Recordsdata” and different points.
In the meantime, the platform can not seem to keep out of the information, as IBM just lately mentioned it could pull promoting on X after discovering its advertisements have been being positioned subsequent to pro-Nazi content material. Musk himself confronted criticism after he appeared to endorse an antisemitic submit on the platform.
