Social media network Twitter disclosed on Monday that after receiving a draft complaint from the FTC, it expects to be fined as much as $250 million for collecting personal information from users for security reasons and then using the data for targeted advertising purposes.
CNBC reports that social media network Twitter disclosed this week that it expects to be fined as much as $250 million for using the personal information that users provided for security purposes for targeted advertising instead. The announcement comes shortly after Twitter received a draft complaint from the FTC.
Twitter’s stock dropped by approximately 1 percent after hours on the announcement. Twitter made the disclosure in its second-quarter 10-Q financial filing with the SEC, stating that: “The allegations relate to the Company’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. The Company estimates that the range of probable loss in this matter is $150.0 million to $250.0 million and has recorded an accrual of $150.0 million.”
The estimate from Twitter was announced after receiving a draft complaint from the FTC on July 28 for violating the company’s 2011 consent order with the agency. The consent order required Twitter to establish and maintain a comprehensive security program and banned the company from misleading consumers about its security and privacy practices.
Read the full article here.