July 6, 2026

California calls on the Federal Trade Commission to deny X pardon, safeguard personal data of X users

Filing with FTC seeks to block ‘pardon’ of company controlled by Elon Musk

WHAT YOU NEED TO KNOW: California Business and Consumer Services Agency Secretary Rohit Chopra is urging the Federal Trade Commission to deny a request from Elon Musk’s company for a politically motivated pardon. If granted, the pardon would excuse the company from facing accountability for numerous data security violations and allow the company to continue to ignore privacy protections, exposing its users to fraud and abuse.

SACRAMENTO – As part of California’s work to protect consumers and their privacy, the Business and Consumer Services Agency today urged the Federal Trade Commission to deny a request by Elon Musk and his company, X Corporation, for a pardon from a law enforcement order for X’s repeated data and privacy law violations.

The company, which was found to have unlawfully mishandled sensitive data and exposed millions of users’ private information to hackers and the dark web, is now attempting to escape real consequences and cash in on Elon Musk’s personal relationship with Donald Trump by requesting that it be released from a prior FTC enforcement order — essentially seeking a pardon for its violations. The Agency is calling on the FTC to instead protect consumers and small businesses by denying this politically motivated request and getting back to its actual mission to protect Americans.

“Protecting Californians from fraud means protecting their wallets, their privacy, and their peace of mind. When companies fail to enact privacy and security safeguards — exposing people to scammers, fraudsters, and bad actors — they should be held accountable. The FTC should focus on protecting the public from unfair and deceptive practices, not handing out free passes to Oval Office insiders. California will put consumers and small businesses first, strengthen privacy protections, and stand up for the people we serve, not special interests." California Business and Consumer Services Agency Secretary Rohit Chopra.

California’s filing explains how mishandling of sensitive data can lead to financial harms, fraud, and stalking. The letter also raises concerns about the appearance of a politically motivated pardon should the termination be granted.

X seeks a free pass to keep violating user privacy

The order X is seeking to terminate stems from prior action by the FTC to correct the company’s security lapses. In 2010, X (then called Twitter) entered into a settlement with the FTC after it found the company misrepresented its privacy and security practices. The FTC found severe security lapses gave hackers control of the social media platform, including access to private user data, tweets, and accounts. X agreed to take steps to fix the security lapses and face penalties if additional misrepresentations were made.

In 2022, the FTC and U.S. Department of Justice found that the company violated the order by baiting 140 million users to give their personal phone numbers under the guise of account security, when in reality, the company used the information to feed its advertising and monetization. X actions also violated international privacy agreements with the European Union and Switzerland. For these violations, X agreed to pay $150 million and agreed to a modified order through 2042.

In May, X filed a petition with the FTC with a brazen request: to wipe away the FTC’s law enforcement order and allow the company to escape accountability and end additional protections for X users. If the order is not in place, the FTC would not be able to seek penalties nor obtain assurances that X is not snooping on users or misusing their sensitive personal data.

California is stepping up as federal protections are rolled back

Governor Gavin Newsom has positioned California at the forefront of efforts to protect consumers and lower costs, including by:

  • Cracking down on junk fees and hidden charges
  • Increasing oversight and accountability for oil companies
  • Launching CalRx to lower prescription drug costs
  • Strengthening online privacy and consumer data protections
  • Expanding enforcement against scams and predatory practices
  • Increasing corporate transparency and accountability

The new Business and Consumer Services Agency, under the leadership of Secretary Chopra, builds on this work by strengthening oversight, improving coordination across departments, and modernizing California’s consumer protection framework amid growing threats from weakened federal enforcement.

The new agency encompasses dozens of boards, bureaus, and departments under one umbrella, coordinating regulation and enforcement across sectors that touch the daily lives of Californians — from financial services and health care to real estate, retail, hospitality, agriculture, and higher education. As the Trump Administration weakens protection and hurts Americans by engaging in corruption and backsliding, California is stepping up to create a strong backstop that helps protect a fair economy for all.

California: advancing innovation and consumer protections.

As a national leader and birthplace of modern tech, California continues to take bold action to strengthen the safety, security, and consumer privacy in the online platforms that Californians use every day. California dominates in tech innovation, with 33 of the top 50 private AI companies in the world based in California. No state has taken more aggressive action to strengthen the safety, security, and consumer privacy of technology and online platforms:

  • Leading responsible deployment of generative AI — California was the first state to take action on generative AI, with Governor Newsom’s executive order in 2023 directing the state to both responsibly adopt this technology in state government and begin studying its risks. In response, California launched nation-leading pilots to use AI to enhance customer service, reduce traffic, and improve road safety.
  • First-in-the-nation AI guardrails — The Governor convened world-leading academic experts to draft the California Report on Frontier AI Policy, that helped lead to the Governor’s signature on the SB 53 (Wiener), the first state legislation nationwide to help ensure that this technology moves forward responsibly. The law has since been replicated and modeled in similar laws adopted in other states.
  • Giving Californians stronger control of their data — Last year, Governor Newsom signed AB 656, which requires social media companies to make it clear and easy for a user to delete their account – and requires that deletion also trigger full deletion of the user’s personal data.
  • Launching first-in-the-nation privacy tools — Earlier this year, California launched its first-in-the-nation privacy tool that enables Californians to easily opt out of the sale of their information by data brokers. The tool, Delete Request and Opt-out Platform, better known as DROP, was made possible by SB 362 (Becker) (the Delete Act), signed by Governor Newsom in 2023, which helps continue advancing California’s nation-leading privacy protections.

This adds to other consumer protections signed by Governor Newsom to:

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