Twitter has revealed that it expects to pay টি 150 to 250 250 million in FTC fines related to violations of the use of personal data for advertising on social networks.
The agency disclosed the expected chance of a fine in a 10-Q filing with the SEC. Twitter said on July 28 that it had received a complaint from the Federal Trade Commission alleging that the organization had violated a 2011 consent order, which required Twitter to “establish a data-protection program designed to protect unsolicited information from the public.”
“The complaints relate to the use of phone numbers and / or email address data provided by the company for security and protection purposes for targeted advertising between 2013 and 2019,” the Twitter filing said.
Violations of Twitter’s FTC order are not related to the July 15 hack by cybercanny scammers, in which attackers hijacked and sent tweets from 40 accounts, including Joe Biden, Barack Obama, Elon Musk and Kenny West.
Twitter received the letter from the FTC after learning of the second quarter results. The company said it earned 150 150 million, which was included in Q2’s balance sheet, in connection with the FTC investigation. The Twitter 10-Q filing noted that the matter “remains unresolved, and there is no assurance about the timing or condition of any final outcome.”
The 2011 FTC Order will remain in effect until March 2, 2031 – or, if the U.S. government or the FTC files a lawsuit in federal court alleging that Twitter has violated it, it may be extended 20 years after that date.
In a filing on Monday, Twitter said: “We expect the FTC and other regulators around the world to continue to be the subject of regulatory investigations, investigations and audits in the future.
In the second quarter, Twitter’s average monetized daily active users grew 34% year-over-year to 18 18 million, a record quarterly amount of 20 20 million. The company fell short of Wall Street expectations as revenue fell by 19%. The company said it plans to increase capex spending on infrastructure “to support audience growth and product innovation,” adding that the company did not provide Q3 guidelines unless it expects total costs to increase by 10% or more year after year.
Twitter CEO Jack Dorsey also told analysts that the company would probably start testing subscription services after 2020.