Komal Joshi · Oct 29, 2020 . 6min read
Twitter might have to pay up to $250 million in fines
Twitter announced in its latest quarter filings with the SEC that it may have to pay up to $250 million in fines to the FTC due to its breach of user data.
By Shilika · Aug 4, 2020 . 4min read
Twitter announced in its second-quarter filing that it stands to lose $250 million. The loss is the result of a payment the Company has to make to the Federal Trade Commission (FTC). The FTC fined the tech giant for improper use of users private data.
The Company made the following statement in its financial filing with the SEC:
“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.”
Twitter admitted to illegal use of its user’s phone number and email address data for advertising purposes. Users enter these details for security reasons. Twitter will even explain the cause of data required in case their accounts get lost or stolen. The Company claims that it had not engaged in this practice since last September when it settled with the FTC to the tune of $5 billion.
The Company also commented on the impact that COVID-19 is having on its revenues. Global advertising has taken a hit on the platform, and it is unsure how things will pan out. Last months hack of prominent celebrities in an attempted Bitcoin scam has also hurt the Company’s reputation. It has resulted in the loss of users, loss of advertising, and several legal claims made against the Company.
Twitter’s stock fell briefly after the announcement of the fine. Overall, it is up 13% this year.
Recently we also reported on how the US Authorities charged the 17-year-old mastermind behind the attack .