Twitter Agreed to Pay $150 for Privacy and Security Violations

Twitter Inc. agreed to pay $150 million to resolve allegations of misusing personal information, such as targeted advertising phone numbers, after informing users that the information was used for security reasons, according to a court document filed Wednesday. 

According to court documents, the Twitter settlement contains allegations that it misrepresented the "security and privacy" of user data from May 2013 to September 2019. The company will pay $150 million as part of a settlement announced by the Justice Department and the Federal Trade Commission (FTC). In addition to the monetary settlement, the agreement requires Twitter to improve its compliance practices.

Twitter's privacy director Damien Kieran said in a statement "we've engaged with the agency on operational updates and program improvements" to protect the privacy and security of its users.

Twitter is a free service that makes money primarily from advertising. Billionaire Elon Musk, who is acquiring the platform for $44 billion, has criticized the ad-driven business model and promised to diversify its revenue streams.

The complaint also alleges that Twitter falsely claimed to be compliant with European Union regulations and the Swiss U.S. Privacy Shield Framework that prevents businesses from using data in ways that consumers do not allow.