Safety

Elon Musk seeks to end FTC data-audit order on X

Elon Musk is trying again to escape a 20-year data-privacy order from the FTC, which he claims is outdated and costly.

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Elon Musk is attempting once more to have the Federal Trade Commission (FTC) revoke a strict data-privacy order imposed on X, formerly Twitter. The order, which requires regular audits and allows the FTC to request documents to ensure compliance, was issued after Twitter admitted in 2019 that a coding error had exposed users' contact information for targeted ads. In a 2022 settlement, Twitter agreed to pay $150 million and let the FTC monitor its data practices until 2042. Musk previously tried to get the order revoked in 2023, arguing that the FTC was biased and that the company had since built a strong privacy program. He now claims the FTC should stop monitoring because Twitter no longer exists, having been merged into xAI and then SpaceX. Musk also argues that the order imposes unnecessary costs and that the FTC’s complaints are based on outdated facts. Source: arstechnica

The FTC has raised concerns about Musk’s management of X, including layoffs that may have impaired the company’s ability to maintain data controls. According to the agency’s filing, no one was responsible for about 37 percent of X Corp.’s privacy program controls. The FTC also pointed to Musk’s demands for internal access to systems, including a text from Musk threatening to fire anyone who blocked an executive assistant’s access. In 2024, the agency claimed that X security staff sometimes had to disobey Musk to stay compliant. The FTC argued that the company’s spotty functionality after layoffs signaled a potential lapse in compliance. Musk lost his previous lawsuit, as the court found the FTC had the authority to enforce the order. Source: arstechnica

The FTC is now seeking public comments on X’s petition to end the order, with a deadline of July 2. So far, only a little more than a dozen comments have been submitted, most anonymously urging the FTC to deny the petition. Commenters argued that Musk knew about the order before buying Twitter and that the compliance costs are proportional to the violation, especially given X’s $44 billion valuation. Some suggested the FTC should intensify its monitoring, while others criticized Musk’s track record. Only one commenter supported X’s petition, but they seemed more focused on criticizing the FTC than backing X’s claims. Source: arstechnica

Key points

The FTC imposed a 20-year data-privacy order on X after Twitter admitted a coding error exposed users' contact information for targeted ads.
X agreed to pay $150 million and let the FTC monitor its data practices until 2042 to protect user privacy.
Musk claims the FTC should stop monitoring because Twitter no longer exists, having been merged into xAI and then SpaceX.
The FTC argued that Musk’s layoffs impaired X’s ability to maintain data controls, with no one responsible for about 37 percent of privacy program controls.
Musk lost his previous lawsuit, as the court found the FTC had the authority to enforce the order.
The FTC is seeking public comments on X’s petition to end the order, with a deadline of July 2.

Source: Ars Technica Read the original →

WRITTEN BY

Nadia Rahman

AI Safety, Alignment & Policy

Nadia follows AI safety, alignment, regulation, and the policy debates shaping the field.