The Federal Trade Commission’s investigation into Twitter’s data and privacy practices is becoming more rigorous, with the agency now seeking testimony from Elon Musk, the company’s CEO. According to the New York Times, the investigation centers on whether or not Twitter has the ability to protect user privacy following Musk’s mass layoffs and budget cuts since he acquired the company in 2021.
The agency has requested a meeting with Musk and former Twitter employees who worked on privacy and security at the company. Twitter is subject to the regulatory oversight of the FTC, which has investigated allegations of security breaches made by a former executive, as well as the sudden departures of three high-ranking executives in charge of privacy, security, and compliance. Additionally, the European Union has pushed Twitter to disclose more information about its efforts to combat disinformation. The Securities and Exchange Commission has investigated whether Musk’s purchases of Twitter stock were appropriately informed.
Twitter reached a consent decree with the FTC in 2011, and it was later expanded in 2022. The law requires Twitter to conduct regular security audits and update the FTC on handling sensitive data. Additionally, Twitter must provide details about its management structure and clarify Elon Musk’s role in the company. The FTC has raised concerns about whether Twitter has adequate staff and financial resources to meet its privacy obligations, particularly as Musk has been reducing costs and laying off employees.
Twitter had been using Collibra software to track its compliance progress, but payments to the company were halted as part of Musk’s cost-cutting efforts. As a result, the compliance process has become more complex, prompting the FTC to question whether Twitter has the necessary resources to meet its obligations. The agency also seeks to determine Musk’s level of involvement in privacy-related decisions and which other executives have a role in those matters.
A Republican-led House Judiciary Committee subcommittee has criticized the FTC for an “aggressive campaign to harass Twitter.” The subcommittee also criticized the FTC for asking Twitter about access to internal company files it provided to journalists. However, the FTC defended its investigation, stating that protecting consumers’ privacy is what the agency is supposed to do.
If Twitter misleads investigators regarding its privacy practices, the FTC can impose fines on the company and even impose criminal penalties on its executives. Twitter has recently requested additional time from the agency to respond to inquiries about staffing and resources, citing ongoing changes to its corporate structure and leadership. Musk’s large-scale layoffs disrupted the company’s legal department, resulting in junior employees assuming new roles beyond their qualifications.
