X can't shirk FTC privacy settlement, or block Elon Musk's deposition
KEY TAKEAWAYS
- Elon Musk's social media company, X, cannot avoid FTC oversight and Musk's deposition.
- The FTC imposed requirements for safeguarding user data, and Musk's legal team argued that the agency increased its scrutiny after Musk took over.
- The judge denied the motion to set aside the consent order and declined to interfere in the FTC investigation.
- The FTC was concerned about X Corp's ability to comply with the Administrative Order due to significant changes initiated by Musk.
- The company's argument against the FTC's bias and misconduct was not accepted by the judge.
SUMMARY
Elon Musk's social media company, X, formerly known as Twitter, is unable to avoid the Federal Trade Commission's (FTC) oversight and the deposition of Musk. The FTC accused X of not complying with a settlement after Musk took control of the company. A federal judge ruled that he has no authority to throw out or pause the settlement or to bar the agency from deposing Musk. The FTC had imposed requirements for safeguarding user data, and Musk's legal team argued that the agency increased its scrutiny after Musk took over. However, the judge denied their motion, stating that he lacked authority to set aside the consent order approved by an FTC administrative judge. The judge also declined to interfere in the FTC investigation by letting Musk avoid a deposition. The FTC was concerned about X Corp's ability to comply with the Administrative Order due to significant changes initiated by Musk. The company's argument against the FTC's bias and misconduct was not accepted by the judge.