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Twitter Agrees to $150 Million Fine from the FTC Over Past Misuse of Users’ Personal Information

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Elon Musk Launches Hostile Takeover Bid for Twitter

The hits just keep on coming at Twitter HQ.

This week, Twitter has agreed to pay a $150 million settlement to the FTC over a past misuse of user data, which saw information submitted for personal identification confirmation purposes mistakenly then used in Twitter’s ad targeting efforts.

As explained by Twitter:

On May 25, 2022, Twitter reached a settlement with the Federal Trade Commission (FTC) regarding a privacy incident disclosed in 2019 when some email addresses and phone numbers provided for account security purposes may have been inadvertently used for advertising. This issue was addressed as of September 17, 2019, and today we want to reiterate the work we’ll continue to do to protect the privacy and security of the people who use Twitter.”

The issue, as Twitter notes, was made public in 2019, when Twitter disclosed that it had been using information submitted for account security checks within its data targeting process.

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Twitter revealed the initial finding in its Q3 2019 results, in which it noted that the correction of this element would have an impact on its overall revenue performance.

As Twitter CFO Ned Segal explained at the time:

We ask people a series of questions before we put you into a timeline when you’re new to Twitter. Among the questions we ask are if we can use your device settings to figure out the best ads to show you. It turns out there that, that setting wasn’t working as expected, and we were using device settings even if people had asked us not to do so. So when we discovered that, one, we Tweeted about it, which we often do to try to be transparent with people when things aren’t working as expected. And two, we turned off the setting so that it would work as expected. That has a negative impact to revenue because it’s one less input that you’ve got when you are figuring out which ads to show people. So instead of getting a partial quarter impact, you get a full quarter impact in Q4.”

So, essentially, Twitter’s system did not respect user privacy inputs, and that flaw had been in place for six years, between 2013 and 2019.

Which is a significant privacy breach, hence the $150 million fine from the FTC.

As per the FTC’s announcement:

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“Twitter asked users to give their phone numbers and email addresses to protect their accounts. The firm then profited by allowing advertisers to use this data to target specific users. Twitter’s deception violates a 2011 FTC order that explicitly prohibited the company from misrepresenting its privacy and security practices.

While the case itself is not new, and the flaw at the heart of the issue has been resolved, it’s another blow for Twitter, which is in the midst of a cost-cutting push as it works to meet its own, tough revenue and growth targets, while also navigating a hostile takeover push from Elon Musk.

Twitter had factored this fine into its forecasts, so the hit won’t be as significant as it may sound, but even so, $150 million is a lot to take off its books – though it will clear the way for a new era if/when Musk does take over the app.

Which still seems like a ‘when’, despite Musk’s protests about the platform’s fake profile count and other transparency issues.

Whatever comes next, this does help to clarify Twitter’s ledger, as the FTC fine had been hanging over it for almost three years.

The case also highlights, once again, that even a relatively minor flaw like this can have a big impact when you’re operating at the scale that social platforms do. A small error with a few hundred people is a problem, but when it impacts millions, the extent of that issue is amplified significantly.

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And there may be other flaws yet to be found – though Twitter says that it’s since implemented a range of checks and processes to ensure that it’s no longer misusing any user data.

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Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

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Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

In a recent announcement, Snapchat revealed a groundbreaking update that challenges its traditional design ethos. The platform is experimenting with an option that allows users to defy the 24-hour auto-delete rule, a feature synonymous with Snapchat’s ephemeral messaging model.

The proposed change aims to introduce a “Never delete” option in messaging retention settings, aligning Snapchat more closely with conventional messaging apps. While this move may blur Snapchat’s distinctive selling point, Snap appears convinced of its necessity.

According to Snap, the decision stems from user feedback and a commitment to innovation based on user needs. The company aims to provide greater flexibility and control over conversations, catering to the preferences of its community.

Currently undergoing trials in select markets, the new feature empowers users to adjust retention settings on a conversation-by-conversation basis. Flexibility remains paramount, with participants able to modify settings within chats and receive in-chat notifications to ensure transparency.

Snapchat underscores that the default auto-delete feature will persist, reinforcing its design philosophy centered on ephemerality. However, with the app gaining traction as a primary messaging platform, the option offers users a means to preserve longer chat histories.

The update marks a pivotal moment for Snapchat, renowned for its disappearing message premise, especially popular among younger demographics. Retaining this focus has been pivotal to Snapchat’s identity, but the shift suggests a broader strategy aimed at diversifying its user base.

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This strategy may appeal particularly to older demographics, potentially extending Snapchat’s relevance as users age. By emulating features of conventional messaging platforms, Snapchat seeks to enhance its appeal and broaden its reach.

Yet, the introduction of message retention poses questions about Snapchat’s uniqueness. While addressing user demands, the risk of diluting Snapchat’s distinctiveness looms large.

As Snapchat ventures into uncharted territory, the outcome of this experiment remains uncertain. Will message retention propel Snapchat to new heights, or will it compromise the platform’s uniqueness?

Only time will tell.

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Catering to specific audience boosts your business, says accountant turned coach

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Catering to specific audience boosts your business, says accountant turned coach

While it is tempting to try to appeal to a broad audience, the founder of alcohol-free coaching service Just the Tonic, Sandra Parker, believes the best thing you can do for your business is focus on your niche. Here’s how she did just that.

When running a business, reaching out to as many clients as possible can be tempting. But it also risks making your marketing “too generic,” warns Sandra Parker, the founder of Just The Tonic Coaching.

“From the very start of my business, I knew exactly who I could help and who I couldn’t,” Parker told My Biggest Lessons.

Parker struggled with alcohol dependence as a young professional. Today, her business targets high-achieving individuals who face challenges similar to those she had early in her career.

“I understand their frustrations, I understand their fears, and I understand their coping mechanisms and the stories they’re telling themselves,” Parker said. “Because of that, I’m able to market very effectively, to speak in a language that they understand, and am able to reach them.” 

“I believe that it’s really important that you know exactly who your customer or your client is, and you target them, and you resist the temptation to make your marketing too generic to try and reach everyone,” she explained.

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“If you speak specifically to your target clients, you will reach them, and I believe that’s the way that you’re going to be more successful.

Watch the video for more of Sandra Parker’s biggest lessons.

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Instagram Tests Live-Stream Games to Enhance Engagement

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Instagram Tests Live-Stream Games to Enhance Engagement

Instagram’s testing out some new options to help spice up your live-streams in the app, with some live broadcasters now able to select a game that they can play with viewers in-stream.

As you can see in these example screens, posted by Ahmed Ghanem, some creators now have the option to play either “This or That”, a question and answer prompt that you can share with your viewers, or “Trivia”, to generate more engagement within your IG live-streams.

That could be a simple way to spark more conversation and interaction, which could then lead into further engagement opportunities from your live audience.

Meta’s been exploring more ways to make live-streaming a bigger consideration for IG creators, with a view to live-streams potentially catching on with more users.

That includes the gradual expansion of its “Stars” live-stream donation program, giving more creators in more regions a means to accept donations from live-stream viewers, while back in December, Instagram also added some new options to make it easier to go live using third-party tools via desktop PCs.

Live streaming has been a major shift in China, where shopping live-streams, in particular, have led to massive opportunities for streaming platforms. They haven’t caught on in the same way in Western regions, but as TikTok and YouTube look to push live-stream adoption, there is still a chance that they will become a much bigger element in future.

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Which is why IG is also trying to stay in touch, and add more ways for its creators to engage via streams. Live-stream games is another element within this, which could make this a better community-building, and potentially sales-driving option.

We’ve asked Instagram for more information on this test, and we’ll update this post if/when we hear back.

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