Someone please explain this to me.
Texas Attorney General Ken Paxton said Monday he is investigating Twitter over its reporting of how many accounts on the platform are from bots and fake users, saying the company may be misrepresenting the number to inflate its value and raise its revenue.
Twitter has claimed in its financial regulatory filings that less than 5% of its daily active users are spam accounts. But Paxton on Monday alleged that spam accounts could make up as much as 20% of users or more.
“Bot accounts can not only reduce the quality of users’ experience on the platform but may also inflate the value of the company and the costs of doing business with it, thus directly harming Texas consumers and businesses,” Paxton said.
False reporting of fake users could be considered “false, misleading, or deceptive” under the Texas Deceptive Trade Practices Act, he said. Paxton sent Twitter a civil investigative demand, requiring the social media company to turn over documents related to how it calculates and manages its user data.
Twitter could not be immediately reached for comment on the investigation.
The investigation comes as Tesla CEO Elon Musk is also raising questions about the number of fake accounts on Twitter. Musk, who is in negotiations to buy the social media company, threatened to walk away from the deal saying that Twitter has not provided data he has requested on spam accounts.
I mean, I guess this could be a matter of interest for the state of Texas under its Deceptive Trade Practices Act. Hard for me to believe that it’s of such urgency right now as to merit action from the Attorney General – the question of how many fake Twitter accounts there are is as old as Twitter is – and of course the fact that it coincides with Elon Musk’s performance art bid to buy Twitter, which if there’s any justice in the world will cause him serious financial pain, makes it even less credible. But hey, surely we can take Ken Paxton’s word for it, right?
I do want to call your attention to the fact that what Paxton has actually done is to send Twitter a “civil investigative demand” for this info. Do you know what that means? Well, I now do, thanks to some research I did when a previous lawsuit filed by Twitter against Paxton, who had been demanding information about their ban of The Former Guy, was dismissed by a California judge. Paxton has made a similar “civil investigative demand”, and the judge ruled that Twitter had no cause to sue over this because a “civil investigative demand” is what the legal folks call “self-executing”, which is a fancy way of saying “completely voluntary”. Twitter was free to ignore the CID by Paxton, who would have had to sue them in federal court to enforce it, with Twitter then having the opportunity to argue that he had no jurisdiction over them in this matter.
That all sure sounds familiar here. If that’s the case – and Paxton clearly knows this – then what we have here is just a bit of trolling, plus some sucking up to another rich dude that Paxton likes. If you want to make the argument that this is a thing the state’s top lawyer ought to be doing, you go right ahead. Reform Austin has more.