Musk lost his previous lawsuit when the court found he had no authority to modify or end the FTC’s order. Musk is trying again with new arguments, complaining in a petition to the FTC in May that they should rescind the order “without delay.”
According to Musk, the FTC should stop its monitoring because Twitter no longer exists, as X was merged into XAI, and then XAI was folded into SpaceX. Musk also argues that since no leadership or engineers responsible for the two-factor authentication error remain at the company, and “X has since built a world-class privacy and data-protection program” that protects consumers, the FTC no longer needs to intervene.
The company further argued that it paid $17 million in “unnecessary costs”, as litigation over the same two-factor authentication issue ended with a verdict in Twitter’s favor. If a court found that Twitter’s privacy policy adequately informed users that their contact information could be used for ad targeting, the FTC should not be able to continue punishing X for that behavior, Musk argued.
“The factual basis of the FTC’s complaint has been destroyed,” Ax says. “And the staggering cost of the order – imposed on both the company and the Commission – is unjustified.”
As X sees it, the order also requires the company to duplicate compliance efforts, since
Finally, X raised two further claims to justify setting aside the order. First, X claimed that allowing the FTC to maintain the order would chill speech on
And second, Ax argued that Donald Trump’s AI Action Plan requires government agencies to abandon such orders. Since
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