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US legislators call on FTC to probe Musk Twitter takeover

  • By Al Mayadeen English
  • Source: Agencies
  • 17 Nov 2022 23:28
5 Min Read

The US Congress wants the FTC to move against Elon Musk's takeover of Twitter after several disasters took place due to certain policies the CEO decided to embark on.

  • x
  • The Federal Trade Commission, Washington, DC, United States
    The Federal Trade Commission, Washington, DC, United States

Seven Democratic Senators sent on Thursday a letter to the Federal Trade Commission (FTC) requesting it open an investigation into Twitter CEO Elon Musk's takeover of the social media giant to see whether the eccentric billionaire was undermining the integrity and safety of the social media platform.

"We write regarding Twitter's serious, willful disregard for the safety and security of its users, and encourage the Federal Trade Commission (FTC) to investigate any breach of Twitter's consent decree or other violations of our consumer protection laws," the lawmakers said.

Democratic Senators Elizabeth Warren, Richard Blumenthal, and the other five lawmakers, also highlighted how they were concerned that Musk's drastic change in company policy may potentially violate the FTC's consent decree, which prohibits misrepresentation and requires that Twitter keep a comprehensive information security program.

They also stressed that Musk's significant policy changes may render the platform vulnerable to abuse with fraud, scams, and misinformation.

Lawmakers further highlighted their concern that the abuse was evident through Musk's new verification system that allows users to get verified for $7.99 a month.

Problems on the social media platform Twitter has caused serious communication issues as users struggle to sign up for the new service Twitter blue launched several days ago.

In a striking example, one pharmaceutical company suffered massive losses in shares after an impersonating account tweeted insulin would now be free in the US.

Over a 24-hour period on Friday, Eli Lilly & Co. fell sharply by 4.45%.

The impersonating account which uses the handle @EliLillyandCo had the same username and profile photo as the official Eli Lilly and Co account that uses the handle @LillyPad.

The parody account managed to purchase the checkmark via the service, successfully misleading users of the social media platform into believing the hoax.

According to a study published by The Lancet in 2022, between 2007 and 2018, the cost of some insulin products has increased by more than 200%

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In the year 2021, more than 31 million people in the US were without any healthcare coverage, exposing them to unaffordable insulin.

The system has since been put on hold, but Misk will be reintroduced on November 29 after mass confusion ensued.

Check out: Chaos takes Twitter by storm after the blue tick feature

Alex Stamos, former Facebook security chief and cybersecurity expert, tweeted last week about a “serious risk of a breach with drastically reduced staff” that could also put Twitter at crossroads with a 2011 order from the Federal Trade Commission (FTC) requiring it to take care of serious data security lapses.

This is a really big deal. Twitter made huge strides towards a more rational internal security model and backsliding will put them in trouble with the FTC, SEC, 27 EU DPAs and a variety of other regulators.

There is a serious risk of a breach with drastically reduced staff. https://t.co/2VxOC6d6lY

— Alex Stamos (@alexstamos) November 10, 2022

"Twitter made huge strides towards a more rational internal security model and backsliding will put them in trouble with the FTC" and other regulators in Europe and the US, Stamos said. 

The FTC relayed that it is “tracking recent developments at Twitter with deep concern," emphasizing that "no CEO or company is above the law, and companies must follow our consent decrees."

"Our revised consent order gives us new tools to ensure compliance, and we are prepared to use them." In an email to employees seen by AP, Musk noted that "Twitter will do whatever it takes to adhere to both the letter and spirit of the FTC consent decree."

"Anything you read to the contrary is absolutely false. The same goes for any other government regulatory matters where Twitter operates," Musk continued.

In May, a $150 million penalty was paid by Twitter for violating the 2011 order, and the order's amended version provided new procedures that further required Twitter to enforce an enhanced privacy protection program.

In the complaint filed, the agencies said that from May 2013 to September 2019, Twitter told users that it was collecting their email addresses and phone numbers for purposes of account security. However, the company failed to reveal it would also use the data to enable companies to send targeted online ads to users.

The FTC and DOJ also said in the complaint that Twitter falsely claimed it acted in accordance with US privacy agreements with Switzerland and the European Union, which ban companies from processing user data in ways that are at odds with purposes authorized by users.

The FTC and DOJ also said in the complaint that Twitter falsely claimed it acted in accordance with US privacy agreements with Switzerland and the European Union, which ban companies from processing user data in ways that are at odds with purposes authorized by users.

  • United States
  • Congress
  • Democratic Party
  • Elizabeth Warren
  • Elon Musk
  • Twitter

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