Please steal from me

If you are going to punish someone for bad behavior, you need to make sure that the punishment will deter similar behavior in the future.

Which is why the recent $150M fine on Twitter seems inadequate. The fine was imposed because Twitter, for 6 years, sold its users’ personal information to advertisers without the users’ knowledge or permission, just after promising the regulators (in 2011) that they would not engage is such practices.

During those 6 years (from 2014 to 2019), Twitter had gross profits of over $10B. Twitter doesn’t charge users for its services, so the vast majority of its revenue comes from selling advertising. This fine took away less than 2% of Twitter’s profits. I don’t call this a deterrent.

If someone stole $100 from the petty cash box and the punishment was to return $2, that employee – and all other employees – might actually be emboldened to do it again and again.

I expect that Twitter & Friends will be back in the news for similar behavior before long.

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