Reading view

EFF and Allies: X’s FTC Petition to Waive Privacy Violation Order Should be Rejected

X Corp. should not be able to escape privacy compliance because it changed its name. 

On May 15, X Corp. filed a petition before the Federal Trade Commission (FTC) to set aside or modify an order issued in 2022 requiring the company to report regularly to the FTC for its violations of user data. The order or “consent decree” is a result of misleading the platforms’ 140 million users by using private information given to secure accounts, like phone numbers and email addresses, for targeted advertising. It also fined the company $150 million for the infraction. As part of an open comments period, EFF and allies including Demand Progress Education Fund (DPEF), National Consumers League (NCL) and Electronic Privacy Information Center (EPIC) call on the FTC to reject this petition.

The 2022 order was a renewal of an order stemming from a previous violation. Back in 2011, Twitter (now X) reached a settlement with the FTC after the regulator found Twitter had failed to secure users’ personal information, resulting in exposure of that data to hackers. The settlement banned the company from misrepresenting its data protection measures, required it to set up safeguards on user data, and regularly report its security posture for twenty years. The renewal updated the expiration of X’s obligations to 2042, but if the FTC accepts X's petition, it would end much sooner.

In arguing to set aside the order, X remarks that since the order in 2011 it has “built an entirely new privacy and information security program staffed by new personnel operating under new leadership with a … philosophy grounded on the importance of privacy and information security.” 

These sweeping assurances that corporate restructuring led to a fundamental change in X’s policy and practices around user data should be met with a healthy dose of skepticism, given evidence to the contrary. For example, the company’s quiet rollout integrated its AI model Grok with the platform in 2024, trained (without meaningful consent) on X user data. The company was also subject to a massive data breach in 2025. Even if a rotation of leadership led to prioritizing privacy and information security, our letter highlights that this would not be sufficient grounds to remove the order, “because the FTC orders bind the corporate entity. Those obligations do not dissolve when the employees who negotiated or administered it depart.”

X argues that its entry into the AI space should be reason not to continue the oversight, claiming that “terminating the Order is critical to advancing American leadership in artificial intelligence.” Here again, broad-stroke claims that the guardrails in place “[diverts] engineering resources from innovation to compliance paperwork” ignores the dangers that AI introduces to user data. Far from being a reason to waive the order, clever attacks on models trained on user data has the ability to supercharge the types of secondary use violations that led to the 2022 order renewal. After all, an entire art has been developed around engineering LLM prompts to reveal the data a model was originally trained on.

Our response to X’s petition debunks many claims the company uses in its arguments. For example, there’s little evidence the order placed an undue financial burden on X. In our letter, we note that the compliance cost is merely “a rounding error against the $200 billion valuation of X Corp. following the xAI merger.”

Strong safeguards on our information require eagle-eyed oversight when that data is abused and misused for profiteering ventures. X’s actions not only showed us this in the past, but continue to do so in the present day. We and our civil society partners urge the FTC to take the clear, sensible path and reject X’s petition.

  •  

Getting Digital Fairness Right: EFF's Recommendations for the EU's Digital Fairness Act

Digital Fairness in the EU

The next few years will be decisive for EU digital policymaking. With major laws like the Digital Services Act, the Digital Markets Act, and the AI Act now in place, the EU is entering an enforcement era that will show whether these rules are rights-respecting or drift toward overreach and corporate control. With the proposed EU’s Digital Fairness Act (DFA), the Commission is now turning to increasingly visible risks for users, such as dark patterns and exploitative personalization. Its “Digital Fairness Fitness Check” makes clear that existing consumer rules need updating to reflect how digital markets operate today.

But not all proposed solutions point in the right direction. Regulators are already flirting with measures that rely on expanded surveillance, such as age verification mandates—surface-level fixes that risk undermining fundamental rights while offering little more than a false sense of protection.

For EFF, digital fairness means addressing the root causes of harm, not requiring platforms to exert more control over their users. It means safeguarding privacy, freedom of expression, and the rights of users and developers.

If the DFA is to make a real difference, it must tackle structural imbalances. Lawmakers should focus on two interlocking principles. First, prioritize privacy. Reforms should address harms driven by surveillance-based business models, alongside deceptive design practices that impair informed choices. Second, strengthen user sovereignty, which is also a necessary precondition for European digital sovereignty more broadly. Strengthening user sovereignty means taking measures that address user lock-in, coercive contract terms, and manipulative defaults that limit users’ ability to freely choose how they use digital products and services.

Together, these principles would support the EU’s objectives of consistent consumer protection, fair markets, and a more coherent legal framework. If implemented properly, the EU could address power imbalances and build trust in Europe’s digital economy.

Ban Dark Patterns

Dark patterns are practices that impair users’ ability to make informed and autonomous decisions. Many companies deploy these tactics through interface design to steer choices and influence behavior. Their impact goes beyond poor consumer decisions. Dark patterns push users to share personal data they would not otherwise disclose and undermine autonomy by making alternatives harder to access.

The DFA should address this by clearly prohibiting misleading interfaces that distort user choice in commercial contexts. While the Digital Services Act introduced a definition, it only partially bans such practices and leaves gaps across existing consumer law rules. The DFA should close these gaps by, at the very least, introducing explicit prohibitions and clearer enforcement rules, without resorting to design mandates.

Tackle Commercial Surveillance

At the core of digital unfairness lies the pervasive collection and use of personal data. Surveillance and profiling drive many of the harms regulators are trying to address, from dark patterns to exploitative personalization. The DFA should tackle these incentives directly by reducing reliance on surveillance-based business models. These practices are fundamentally incompatible with privacy and fairness, and they distort digital markets by rewarding data exploitation rather than quality of service. At a minimum, the DFA should address unfair profiling and surveillance advertising by strengthening privacy rights and banning pay-for-privacy schemes. Users should not have to trade their data or pay extra to avoid being tracked. Accordingly, the DFA should support the recognition of automated privacy signals by web browsers and mobile operating systems, which give users a better way to reject tracking and exercise their rights. Practices that override such signals through banners or interface design should be considered unfair.

Addressing surveillance and profiling also protects children, since many online harms are tied to the collection and exploitation of their data. Systems that serve ads or curate content often rely on intrusive profiling practices, raising concerns about privacy and fairness, particularly when applied to minors. Rather than turning to invasive age verification, the focus should be on limiting data use by default.

Strengthen User Sovereignty

There is a major gap in how EU law addresses user autonomy in digital markets: many digital products and services still restrict what people can do with what they pay for through opaque or one-sided licensing terms, technical protection measures, and remote controls. These mechanisms increasingly limit lawful use, modification, or access after purchase, allowing providers to revoke access, disable functionalities, or degrade performance over time. In practice, this turns ownership into a conditional rental.

Consumers must be able to use and resell digital goods without hidden limitations and with clear licensing terms. Too often, technical and contractual lock-ins, including remote lockouts and unilateral restrictions on functionality, erode that control. Recent legal reforms show that progress is possible. Rules such as those under the Digital Markets Act have begun to curb technical and contractual barriers and promote user choice. However, many restrictions persist.

The DFA must address these practices by targeting unfair post-sale restrictions and strengthening users’ ability to control and switch services. This means setting clear limits on unfair terms and misleading practices, alongside robust transparency on how digital services function over time. It should also strengthen interoperability and support user control, allowing people to access third-party applications and to let trusted applications act on their behalf, reducing lock-in and expanding meaningful choice in how users interact with digital services.

  •  

Banning New Foreign Routers Mistargets Products to Fix Real Problem

On March 23, the FCC issued an update to their Covered List, a list of equipment banned from obtaining regulatory approval necessary for U.S. sale (and thus effectively a ban on sale of new devices), to include all new routers produced in foreign countries unless they are specifically given an exception by the Department of Defense (DoD) or DHS. The Commission cited “security gaps in foreign-made routers” leading to widespread cyberattacks as justification for the ban, mentioning the high-profile attacks by Chinese advanced persistent threat actors Volt, Flax, and Salt Typhoon. Although the stated intention is to stem the very real threat of domestic residential routers being commandeered to initiate attacks and act as residential proxies, this sweeping move serves as a blunt instrument that will impact many harmless products. In addition to being far too broad, it won’t even affect many vulnerable devices that are most active in these types of attacks: IoT and connected smart home devices.

Previously, the FCC had changed the Covered List to ban hardware by specific vendors, such as telecom equipment produced by companies Huawei and Hytera in 2021. This new blanket ban, in contrast, affects the importation and sale of almost all new consumer routers. It does not affect consumer routers produced in the United States, like Starlink in Texas. While some of the affected routers will be vulnerable to compromises that hijack the devices and use them for cybercrime and attacks, this ban does not distinguish between companies with a track-record of producing vulnerable products and those without. As a result, instead of incentivizing security-minded production, this will only limit the options consumers have to US-based manufacturers not affected by the ban—even those that lack stellar security reputations themselves.

While the sale of vulnerable routers in the U.S. will not stop, the announcement quoted an Executive Branch determination that foreign produced routers introduce “a supply chain vulnerability that could disrupt the U.S. economy, critical infrastructure, and national defense.” Yet this move does nothing to address the growing number of connected devices involved in the attacks this ban aims to address. As we have previously pointed out, supply chain attacks have resulted in no-name Android TV boxes preloaded with malware, sold by retail giants like Amazon, fuelling the massive Kimwolf and BADBOX 2 fraud and residential proxy botnets. Banning the specific models and manufacturers we know produce dangerous devices putting its purchasers at risk, rather than issuing blanket bans punishing reputable brands that do better, should be the priority.

With the FCCs top commissioner appointed by the President, this ban comes as other parts of the administration impose tariffs and issue dozens of trade-related executive orders aimed at foreign goods. A few larger companies with pockets deep enough to invest in manufacturing plants within the U.S. may see this as an opportune moment, while others not as well poised to begin U.S. operations may attempt to curry enough favor to be added to the DoD or DHS exception lists. At best, this will result in the immediate effect of an ill-targeted policy that does little to improve domestic cybersecurity posture. At worst, it entrenches existing players and deepens problematic quid-pro-quo arrangements.

American consumers deserve better. They deserve the assurance that the devices they use, whether routers or other connected smart home devices, are built to withstand attacks that put themselves and others at risk, no matter where they are manufactured. For this, a nuanced, careful consideration of products (such as was part of the FCC’s 2023-proposed U.S. Cyber Trust Mark) is necessary, rather than blanket bans.

  •  
❌