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Privacy advocates warn FTC: Musk’s X threatens Americans’ data

▼ Summary

– Privacy advocates are urging the FTC to reject X’s bid to end ongoing audits of its data handling, ahead of a July 2 public comment deadline.
– X argued the FTC order is unnecessary due to platform changes since Musk’s takeover, citing rebranding and compliance with EU’s GDPR.
– The FTC order stemmed from a coding error that improperly shared users’ contact information from two-factor authentication for ad targeting.
– X claims the order imposes burdensome costs and its requirements are duplicative due to GDPR obligations.
– Consumer advocates refute X’s arguments, stating the company and its leadership pose a serious risk to privacy and data security.

Ahead of a July 2 deadline for public comments, privacy advocates are urging the Federal Trade Commission to maintain rigorous oversight of Elon Musk’s X and reject the company’s recent petition to end mandated audits of its data privacy practices.

Last month, the FTC published a notice revealing that X had argued the agency’s order was no longer necessary, citing changes Musk implemented after acquiring the platform. The original order stemmed from a coding error at then-Twitter that improperly shared user contact information, originally provided for two-factor authentication, with advertisers. As a result, X must undergo costly independent audits, and the FTC retains authority to demand compliance documents without filing additional legal action.

X claims the order imposes excessive financial burdens and should be terminated, partly because the company has fully rebranded since Musk’s takeover. The platform also contends that the requirements are redundant, given its obligations under the European Union’s General Data Privacy Regulation (GDPR).

In response, 15 privacy and consumer protection groups,including Demand Progress, the Electronic Frontier Foundation, the Electronic Privacy Information Center, and the National Consumers League,co-signed a letter this week refuting each of X’s arguments. They call on the FTC to “unequivocally reject X Corp.’s brazen attempt to escape accountability at the expense of the American people.”

“X Corp.’s petition fails to clear the demanding legal standard necessary to grant the extraordinary action the corporation is requesting,” the letter states. “To the contrary, X Corp. and its current leadership present a serious risk to Americans’ privacy and data security, demonstrating the need for continued” FTC oversight.

AI training and data security concerns

Musk’s core argument hinges on the idea that rebranding Twitter as X and folding it into SpaceX has fundamentally transformed the old business, eliminating any risk of improper data handling. However, critics warn that X’s AI training initiatives and evolving tools pose new threats to user privacy, making ongoing federal scrutiny more critical than ever.

(Source: Ars Technica)

Topics

ftc oversight 95% Data Privacy 93% Elon Musk 90% x corp. 89% ftc order 88% public comments 87% advocacy groups 85% gdpr compliance 82% data security 80% legal petition 79%