Title: US Department of Justice Raises Concerns over X Corp’s Compliance with FTC Order on Data Security and Privacy Practices
Publication Date: Wed 13 Sep 2023
In a recent court filing, the US Department of Justice (DoJ) has alleged that X Corp, formerly known as Twitter, may have violated an order imposed by the Federal Trade Commission (FTC) regarding data security and privacy practices. The filing claims that Elon Musk’s takeover of the social media platform created a “chaotic environment” that raised serious questions about compliance with the FTC’s order.
According to depositions from former employees, the filing alleges that Musk’s leadership style at X Corp may have disregarded the company’s overall security and privacy. Andrew Sayler, former director of security engineering at X, testified that he had ongoing concerns about Musk’s commitment to the organization’s security and privacy due to his requests to grant access to third parties without proper vetting processes.
Another employee mentioned in the filing stated that Musk insisted on launching the new Twitter Blue user verification service despite staffing limitations, causing difficulties in maintaining the service’s stability. The filing cites these examples to highlight concerns about Musk’s handling of security and privacy matters during the company’s transition.
It is worth noting that X Corp settled charges with the FTC last year, agreeing to pay a $150 million fine and update a 2011 order related to misrepresenting its data privacy and security practices. The DoJ argues against X Corp’s attempt to dismiss the updated agreement, stating that compliance with the order was essential even after Musk’s acquisition of the company.
The updated order requires X Corp to implement a privacy and data security program and provide compliance updates to the FTC when requested. The DoJ filing contends that X Corp has expressed dissatisfaction with the FTC’s inquiries since Musk took over the company.
The filing explains that the FTC’s questions were necessary due to the significant changes that occurred after Musk’s takeover. In March, it was revealed that the FTC was investigating Musk’s mass layoffs and had requested his internal communications to oversee the company’s privacy and cybersecurity practices.
The DoJ filing also argues against X Corp’s claim that Musk should not be required to testify about compliance with the order, stating that he possesses unique first-hand knowledge about the company’s data practices.
The document highlights that following Musk’s acquisition, half of X Corp’s employees were fired or resigned, including key executives in privacy, data security, and compliance roles. It further cites issues such as the problematic relaunch of the Twitter Blue subscription service and reports of site outages.
The DoJ maintains that the FTC had valid reasons to seek information regarding these developments and to question X Corp’s compliance. Additionally, the filing emphasizes that X Corp’s attempt to dismiss the FTC order largely ignores the concerns that triggered the regulator’s inquiries.
As of now, X Corp has not provided any comments on the matter.
Please note that the information in this article is based on the court filing and official statements and may be subject to further developments or updates.
End of article.