So here's a story doing its rounds and it absolutely deserves more attention — Elon Musk has once again launched his bid to escape the FTC audit of X data handling practices! 🤯 Back in 2022, shortly before he took over Twitter, the platform voluntarily disclosed that between May 2013 and September 2019 a coding error had allowed users' phone numbers and email addresses (which were shared for two-factor authentication purposes) to be used as targeted ads aimed right back at them. The resulting settlement was serious: $150 million plus the FTC staying on X's data-handling practices all the way until 2042, with independent audits in between. Musk first tried this exact move back in early 2023 — he accused the agency of aggressively ratcheting up investigative demands and claimed they were "tainted by bias" when it came to his company, but that attempt fell flat as a court found no authority for him to amend or terminate their order on its own.
But here's where things get juicy: back during Musk's takeover he actually terminated key staff who had spent years ensuring compliance — and the FTC pointed out this raised genuine questions about whether X could continue meeting all obligations, because one engineer confirmed in a deposition that layoffs crippled "technical restrictions and controls around the company's use of contact data to make sure it was being used for its original purpose." Even worse? About 37% of those privacy program controls had no assigned owner after Musk started reshuffling. Security staff at X reportedly had to point blank disobey Elon in some cases while remaining compliant, especially when journalists were granted access during the Twitter Files period or an executive assistant demanded "immediate" system entry with a threat that anyone standing in their way would be fired — yes this is real!
Now he's back and petitioning yet again for relief starting May 2026, but stacking on some genuinely creative arguments. The latest motion argues: (1) X no longer technically exists since it was merged into xAI which then folded into SpaceX; (2) none of the original leadership or engineers responsible for that two-factor authentication error remain at the company anymore and they've built what Musk calls a "world-class privacy program" now in its place; (3) $17 million in costs have been unnecessary since another lawsuit over those same data-handling issues ended with a favorable verdict on Twitter's side. X has argued, if their court decision means that Twitter adequately informed users about usage for ad targeting purposes then the FTC can't keep punishing them and they point out duplication of GDPR efforts as well! And here comes my favorite part — Musk claims maintaining this order is chilling speech because it creates a permanent mechanism through which regulators pressure platforms over viewpoints hosted. Trump's AI Action Plan supports dropping orders like X while also positioning xAI "at the center of America's AI ambitions" so diverting engineering toward compliance paperwork threatens both innovation and bureaucratic efficiency in one fell swoop! Musk wants either immediate relief or an end-of-year dismissal — he can't afford another year if costs aren't slashed. When FTC opened public comments on June 4, only a dozen anonymous commenters chimed in but they overwhelmingly support denying the petition: "I do not trust that Elon and X won't eventually roll back their privacy measures for sake of cost cutting without consequence" read one; another said buyer beware after Musk's failed exit from Twitter purchase — so classic! A few others suggested intensifying audits rather than letting go now. Notable non-anonymous commenters included Amanda Collins who urged continued protection against oligarch shielding, and William Pate II whose substantive entry argued mergers don't equal sufficient compliance assurance on their own. Deadline July 2 for public comments before the FTC makes its final determination! Source: https://arstechnica.com/tech-policy/2026/06/elon-musk-tries-again-to-escape-ftc-audits-of-x-data-handling/
But here's where things get juicy: back during Musk's takeover he actually terminated key staff who had spent years ensuring compliance — and the FTC pointed out this raised genuine questions about whether X could continue meeting all obligations, because one engineer confirmed in a deposition that layoffs crippled "technical restrictions and controls around the company's use of contact data to make sure it was being used for its original purpose." Even worse? About 37% of those privacy program controls had no assigned owner after Musk started reshuffling. Security staff at X reportedly had to point blank disobey Elon in some cases while remaining compliant, especially when journalists were granted access during the Twitter Files period or an executive assistant demanded "immediate" system entry with a threat that anyone standing in their way would be fired — yes this is real!
Now he's back and petitioning yet again for relief starting May 2026, but stacking on some genuinely creative arguments. The latest motion argues: (1) X no longer technically exists since it was merged into xAI which then folded into SpaceX; (2) none of the original leadership or engineers responsible for that two-factor authentication error remain at the company anymore and they've built what Musk calls a "world-class privacy program" now in its place; (3) $17 million in costs have been unnecessary since another lawsuit over those same data-handling issues ended with a favorable verdict on Twitter's side. X has argued, if their court decision means that Twitter adequately informed users about usage for ad targeting purposes then the FTC can't keep punishing them and they point out duplication of GDPR efforts as well! And here comes my favorite part — Musk claims maintaining this order is chilling speech because it creates a permanent mechanism through which regulators pressure platforms over viewpoints hosted. Trump's AI Action Plan supports dropping orders like X while also positioning xAI "at the center of America's AI ambitions" so diverting engineering toward compliance paperwork threatens both innovation and bureaucratic efficiency in one fell swoop! Musk wants either immediate relief or an end-of-year dismissal — he can't afford another year if costs aren't slashed. When FTC opened public comments on June 4, only a dozen anonymous commenters chimed in but they overwhelmingly support denying the petition: "I do not trust that Elon and X won't eventually roll back their privacy measures for sake of cost cutting without consequence" read one; another said buyer beware after Musk's failed exit from Twitter purchase — so classic! A few others suggested intensifying audits rather than letting go now. Notable non-anonymous commenters included Amanda Collins who urged continued protection against oligarch shielding, and William Pate II whose substantive entry argued mergers don't equal sufficient compliance assurance on their own. Deadline July 2 for public comments before the FTC makes its final determination! Source: https://arstechnica.com/tech-policy/2026/06/elon-musk-tries-again-to-escape-ftc-audits-of-x-data-handling/