Elon Musk is making another attempt to overturn a strict Federal Trade Commission (FTC) order that governs data privacy practices at X, the platform previously known as Twitter. This order, imposed shortly before Musk’s acquisition of the company, mandates 20 years of compliance monitoring and regular independent audits.
Background of the FTC Order
The FTC’s oversight stems from a significant data breach disclosed by Twitter, where a coding error allowed user phone numbers and email addresses—provided for two-factor authentication—to be misused for targeted advertising. In a settlement reached just before Musk’s takeover in 2022, Twitter agreed to pay $150 million and adhere to the FTC’s monitoring until 2042 to enhance user privacy.
Musk’s Legal Challenges
Musk’s initial attempt to revoke the FTC order in 2023 was unsuccessful. He accused the agency of bias and claimed that the order was unjustified, particularly after he made significant layoffs that he argued compromised X’s ability to comply with the order. The FTC countered that Musk’s management changes raised legitimate concerns regarding the company’s commitment to data privacy.
Current Petition and Arguments
In a recent petition submitted in May, Musk contends that the FTC should terminate the order, asserting that X has merged into xAI and subsequently into SpaceX. He argues that the leadership responsible for the previous data mishandling is no longer with the company and claims that X has established a robust privacy program. Musk also highlighted that X has incurred $17 million in unnecessary compliance costs since a lawsuit regarding the two-factor authentication issue concluded in Twitter’s favor.
Public Response and Implications
The FTC has opened a public comment period regarding Musk’s petition, with stakeholders invited to respond by July 2. Initial feedback has largely favored maintaining the order, with many commenters expressing skepticism about Musk’s commitment to data privacy. Some have pointed out that the compliance costs Musk references are proportionate to the scale of the previous violations, especially considering X’s former valuation of $44 billion.
As the FTC continues to evaluate Musk’s arguments, the implications for X’s operational strategy and regulatory compliance remain significant. The agency’s scrutiny underscores ongoing concerns about data handling practices in an era where user privacy is increasingly paramount.
This article was produced by NeonPulse.today using human and AI-assisted editorial processes, based on publicly available information. Content may be edited for clarity and style.
