Social media giant Meta has now also received mail from European consumer protection authorities due to its “pay or consent” model. The Network for Cooperation in Consumer Protection (CPC Network) has listed the points with which the “pay or consent” approach of the company behind Facebook and Instagram violates EU consumer protection. The “pay or consent” approach gives users the option to either pay for Facebook and Instagram or consent to the use of their data for personalized advertising and commercial purposes.
Advertisement
“Consumer protection officials examined a number of elements that may constitute deceptive or aggressive practices, in particular whether Meta had provided truthful, clear and adequate information to consumers beforehand,” The European Commission, which coordinated the action, announced on Monday. It is also about whether users could have understood in advance how their choices would affect their consumer rights.
E-government: The Humanist Association positions itself against digital coercionCriticism of misleading and pressurizing
Officials criticize that the term “free” misleads users because the company collects and processes personal data as an alternative to a paid model – in this case, they ultimately pay with their data, with which Meta earns money, for example through advertising revenue. The company also confuses its users: they have to navigate through different windows and access different parts of the terms of use and privacy policy via links to find out how their data is used. In addition, the terms are vague and ambiguous. As an example, the CPC network uses “your information” to refer to “personal data”.
The company also believes that the payment option may allow customers to get rid of advertising. At the same time, advertising may still pop up on your screen, for example through the content that other members provide via Facebook or Instagram. The CPC Network also suspects that time pressure and the fear of losing access to their account have put consumers under pressure. Until the new model was introduced, the offers were free and for users “often formed an important part of their social life and social interactions”. The fact that access to the account was blocked until the decision was made created pressure to make a decision quickly. Consumers would not be able to check and evaluate their decision.
Fourth inquiry about the model
“We will not stand idly by as consumers are misled by questionable practices,” says Věra Jourová, vice president for Values and Transparency. “We are proud of our strong consumer protection rules, which give consumers the right to be adequately informed about the changes proposed by Meta.” Meta now has until September 1 to present its case and propose a solution. If the company does not respond, it will also face fines.
The EU consumer advocates’ blue letter is not the only lawsuit Meta has entered into with “Pay or Consent”. The European Commission already has an ongoing investigation, which looks at a possible violation of the Digital Markets Act (DMA) and has requested information under the Digital Services Act (DSA). The Irish Data Protection Commission is also investigating a violation of the General Data Protection Regulation (GDPR).
The CPC Network is a European network of ministries and authorities entrusted with consumer protection in the Member States, coordinated by the Commission. For Germany, in addition to the Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV), the responsible ministries of the federal states and authorities such as the Federal Environment Agency, the business supervisory authorities and the media authorities are also represented in the CPC Network.
(Are)
Report: Nvidia is working on an AI chip for the Chinese market
