Following the reported departure of Twitter’s top privacy and compliance officers, a US regulator has expressed “deep concern” over recent developments at the social media platform. The Federal Trade Commission (FTC) recently stated that Elon Musk, the company’s new CEO, was “not above the law.”
In a separate development, Mr. Musk reportedly warned staff that Twitter’s bankruptcy is a possibility. Since Mr. Musk began laying off thousands of workers last week, the company has been in shambles. Verified accounts can now be purchased as part of a Twitter subscription, which has sparked concerns that the platform will soon be inundated with fake profiles.
Twitter’s former head of trust and safety, Yoel Roth, updated his profile on Thursday to reflect his new position. According to reports, the company lost its top three privacy and compliance officers (Damien Kieran, Marianne Fogarty, and Lea Kissner). Due to the departures, Twitter may be more likely to violate legal requirements. In May, the company was fined $150m (£119m) for selling user data and was forced to agree to new privacy rules.
FTC director of public affairs Douglas Farrar expressed “deep concern” over recent developments at Twitter. Companies are required to abide by our consent decrees, and no CEO or corporation is immune from legal consequences. We have new tools to ensure compliance, and we are prepared to use them,” Mr. Farrer said about the FTC’s efforts to enforce the law. In May, Twitter paid a fine to end a lawsuit over whether or not it illegally used user data to facilitate targeted advertising.
It had to pay a fine, comply with new regulations, and implement a stricter privacy and security program, all of which was reportedly overseen by the departing executives. The departure of the company’s an advertising and marketing chiefs since Mr. Musk took control has added to worries that Twitter does not have enough people in place to oversee that it remains compliant with regulations.
Going forward, accounts engaged in parody must include “parody” in their name, not just in bio
— Elon Musk (@elonmusk) November 11, 2022
Moreover, Mr. Musk reportedly informed employees in a meeting that he was unsure of the company’s future financial performance and that bankruptcy was a possibility. “We just definitely need to bring in more cash than we spend. If we don’t do that and there’s a massive negative cash flow, then bankruptcy is not out of the question,” What Mr. Musk reportedly said. Reports say he also encouraged a “maniacal sense of urgency” from the staff.
The company Twitter works for was contacted for their thoughts. According to The Verge, a technology news outlet, which published a full transcript of Mr. Musk’s address to employees, Twitter no longer has a communications department. There are reports that Mr. Musk’s decisions regarding the social media company’s future have scared away some major advertisers. Most of Twitter’s income comes from advertisements, but some major advertisers have paused spending while they evaluate Mr. Musk’s changes.
Until it could determine “the direction of the platform under its new leadership,” Chipotle Mexican Grill said Thursday that it was suspending its paid and owned content on Twitter. It was in good company, joining the likes of General Motors, Volkswagen, Audi, pharmaceutical behemoth Pfizer, and cereal and cereal-bar maker General Mills, whose brands include Cheerios and Lucky Charms.
Some companies are reportedly worried that Mr. Musk will undo permanent Twitter bans given to controversial figures like former US President Donald Trump if he is given the reins to the company.
A US regulator is “very concerned” about Twitter after hearing of the resignation of the company’s chief privacy and compliance executives. CEO Elon Musk was recently called “not above the law” by the Federal Trade Commission (FTC).
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