Twitter Inc (NYSE: TWTR) moved up 0.81% in pre-market on Wednesday that he declared that it used phone numbers and email addresses that some users uploaded for security reasons to target them with ads.
The firm reported that this was “an error” and that the information should not have been used for ad targeting. Twitter wrote Tuesday in a blog that they are very sorry this happened. It didn’t say how many users may have seen ads for the reason that of this activity.
Twitter propose an ad product called “tailored audiences,” which permits advertisers upload a contact list of customers that the firm then matches to existing users on its social network through phone numbers or emails. Twitter reported that it accidentally matched some of these customer lists with similar information that users shared with the firm for security reasons, such as two-factor account authentication.
Previous year, Facebook Inc. (FB) was also found to be using personal information uploaded for security offers to target people with ads. The Federal Trade Commission ordered the social-media giant to stop the practice in July as part of a $5B privacy settlement. Facebook also agreed not to use phone numbers given for security offers to advertise to people.
On the other hand, anyone interested in Twitter, Inc. (NYSE:TWTR) should possibly be aware that the Chief Legal Officer & Secretary, Vijaya Gadde, recently divested US$361k worth of shares in the firm, at an average price of US$43.29 each. On the bright side, that sale was only 2.2% of their holding, so we doubt it’s very meaningful, on its own. Insiders sold stock recently, but they haven’t been buying. And even if we look to the last year, we didn’t see any purchases. But since Twitter is profitable and growing, we’re not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious.