Twitter could face a fine of upto $250 million for unauthorised usage of user data

In a series of bad news for Twitter, the company could face a fine of over $250 million in the United States.

The company will have to pay US authorities for its unauthorised use of phone numbers and email addressed in order to increase the reach of advertisements.

Information compromised?

When authorities discovered the information leak, the Federal Trade Commission lodged a formal complaint against the company. On July 28, the FTC wrote that Twitter had used data promised to be used for security and safety purposes for targeting advertisement campaigning. “Data provided for safety and security purposes for targeted advertising during periods between 2013 and 2019”, it read.

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Owing to this complaint, Twitter stands to lose between $150-$250 million.

Last year in October, Twitter admitted to have “inadvertently” used personal details like mobile phone numbers and email addressed for targeted advertisements. Upon joining, Twitter guarantees users that this data will only be used for security purposes.

No more private usage

Information such an email IDs and phone numbers are generally used to ensure security of the account, and for completing two-factor authentication.

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Earlier, the FTC had lodged a formal complained against Facebook, and reached a $5 billion settlement in the aftermath, which marked the largest ever fine in the commission’s history. Facebook too, had been mishandling personal user data.

In 2020, Twitter reported revenues of over $638 million. In a time when millions have lost employment due to the economic slowdown triggered by coronavirus, tech companies have been inducting record amounts of profits.