Musk's X Asks US FTC to Nullify Data Security Order

Data Security , Regulation , Standards, Regulations & Compliance Musk's X Asks US FTC to Nullify Data Security Order Social Media Platform Files Petition With Agency Over May 2022 Consent Order David Perera (@daveperera) , Greg Sirico • June 3, 2026     Share Post Share Credit Eligible Get Permission Image: Shutterstock Elon Musk's social media company wants a do-over with the U.S. Federal Trade Commission in a petition arguing that the enforcement agency should terminate data security oversight 16 years early. See Also: Live Webinar | Windows 10 End of Support in OT: Practical Strategies for Secure and Resilient Operations In a petition, X, successor to the once-ubiquitous Twitter social media platform, argues ending oversight is necessary for ensuring the company can continue to develop artificial intelligence without having to certify that it considers data security and privacy risks when developing new products. The mercurial centibillionaire and political ally of President Donald Trump earlier this year folded social media network X into another one of his companies, SpaceX. He took Twitter private in October 2022 after paying $44 billion, or $54.20 a share, a number likely a reference to slang for marijuana (see: Will Twitter Sink or Swim Under Elon Musk's Direction?). The FTC began Tuesday a public comment period for X's request to set aside or fully modify a May 2022 consent order that resolved findings that Twitter used phone numbers and email addresses supplied by users for multifactor authentication to improve personalized advertising. The company in its petition argued that the order was "imposed on a company that no longer exists," that individuals behind the "underlying failures" have long "left the company." The company also contends that the order, effective for two decades, "no longer serves any valid regulatory purpose," holding the company responsible for millions of dollars in compliance costs when obligations are already met according to domestic and international privacy laws. "Every hour that X’s engineers spend preparing for biennial assessments, responding to demand letters, or documenting privacy reviews for features that are already governed by other legal regimes is an hour not spent building AI tools that serve users and advance American competitiveness," the petition asserts. The AI division of X, xAI, is widely viewed as distant third to competitors Anthropic and OpenAI. xAI went through a reorganization earlier this year that involved two co-founders departing along with several members of its technical staff. The 2022 FTC consent order extended an earlier 20 year consent order from 2011 that required Twitter to improve its cybersecurity in the wake of two hacking incidents. X estimate that compliance with the 2022 order has cost it $17 million, including the time to respond to agency requests and pay for an outside company once every two years to evaluate its data security and privacy practices. In any case, the practice that led to the 2022 consent order was covered by the Twitter terms of usage, the petition argues, stating that the privacy policy didn't promise that email addresses and phone numbers supplied for multifactor authentication wouldn't be used to improve advertising targeting. It cites a May 2024 dismissal in California Superior Court of a putative class action against Twitter over the repurposed data. The judge wrote that the terms specifically allowed for the possibility of using email and phone numbers to be used for marketing and advertising. The petition marks the second time Musk has attempted to shake free of the 2022 consent order. A federal judge in November 2023 denied the attempt, writing that federal court was the wrong venue to seek to nullify a FTC consent order. The FTC, currently headed by Chairman Andrew Ferguson - a Trump appointee who vowed to "end the previous administration’s assault on the American way of life" - may prove more amenable. The public has 30 days to comment.