Elon Musk tries again to escape FTC audits of X data handling

Elon Musk is once again attempting to end the Federal Trade Commission's (FTC) strict data-privacy order on X, formerly Twitter. This marks his second effort to revoke the order, which mandates independent audits and grants the FTC authority to monitor data handling practices until 2042. The initial order, issued before Musk's acquisition of Twitter, aimed to protect user privacy following a data misuse incident.

Musk's previous attempt to revoke the order in 2023 failed, with the court citing a lack of authority to amend or terminate it. At that time, Musk accused the FTC of bias and excessive demands, claims the FTC countered by highlighting concerns about X's compliance capabilities after significant staff layoffs. An engineer's deposition revealed that cost-cutting measures impaired X's ability to implement necessary technical restrictions on contact data use.

In his latest petition to the FTC, Musk argues that the order is no longer relevant because Twitter has been merged into xAI and then SpaceX, effectively ceasing to exist as a separate entity. He also claims that X has established a "world-class privacy and data-protection program" and that the original leadership responsible for the data error are no longer with the company. Furthermore, Musk asserts that the order creates "needless costs" and duplicates compliance efforts already covered by regulations like the GDPR.

Musk also raises two additional points: he suggests the order chills free speech on X by giving regulators undue influence, and he cites Donald Trump's AI Action Plan as a directive for government agencies to reduce unnecessary bureaucracy, arguing the FTC's order diverts X's engineering resources from innovation.

The FTC is currently seeking public comments on Musk's petition, with a deadline of July 2. The majority of comments received so far anonymously urge the FTC to deny Musk's request, with many pointing out that he was aware of the order before acquiring Twitter and that compliance costs are proportionate to the violation's scale. Some commenters have even suggested that the agency should intensify its scrutiny of X's current data handling practices.