In Could 2022, simply months earlier than Elon Musk acquired Twitter (now X), the Federal Commerce Fee (FTC) hit the platform with a $150 million fine and consent decree that imposed stipulations for safeguarding customers' private information. The ruling was imposed after the FTC discovered that Twitter had violated a previous consent decree by inappropriately sharing consumer telephone numbers and e-mail addresses with advertisers.
After buying Twitter, Elon Musk went to court docket in an try to 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 publish 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 choose 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's a part of a separate investigation, The Washington Post reported. In different phrases, X should nonetheless adhere to the strict privateness reporting requirements imposed by the FTC final 12 months.
The choose listed different points with X's argument, noting that the FTC had good motive to extend scrutiny on X after Musk took over. "The federal government says this improve in investigative exercise shouldn’t be shocking as a result of Musk directed no less than 5 rounds of terminations, layoffs or different reductions in X Corp.’s workforce, which affected the safety, governance, danger and compliance group," he wrote within the ruling.
He added that the third-party assessor mentioned he confronted regular delays resulting from govt turnover at X. Lastly, the choose dominated that Musk can't keep away from being deposed by the FTC, as "the federal government argues that the foremost 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 keen to adjust to the principles, telling employees 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 Files" and different points.
In the meantime, the platform can't appear to remain out of the information, as IBM not too long ago mentioned it might pull advertising on X after discovering its advertisements had been being positioned subsequent to pro-Nazi content material. Musk himself confronted criticism after he appeared to endorse an antisemitic publish on the platform.
This text initially appeared on Engadget at https://www.engadget.com/judge-rejects-attempt-by-x-to-nullify-ftc-privacy-settlement-111536396.html?src=rss
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