The EU’s Consumer Protection Cooperation (CPC) Network is taking action following concerns that Meta’s “pay or consent” model might breach EU consumer law. The Commission is coordinating the action. It is due to Meta requesting that consumers either subscribe to use Facebook and Instagram for a fee, or consent to Meta’s use of their personal data to be shown personalised ads (“pay or consent”).
Consumer protection authorities assessed several elements that could constitute misleading or aggressive practices, including whether Meta provided consumers upfront with true, clear and sufficient information. They analysed whether this information allowed consumers to understand their rights as consumers. In addition, CPC authorities are concerned that many consumers might have been exposed to undue pressure to choose quickly between the two models, fearing that they would instantly lose access to their accounts and their network of contacts.
There are other investigations happening regarding the “pay or consent” model regarding the Digital Services Act and the Diigital Markets Act, as well as the Irish Data Protection Commission’s review under the GDPR.
Key elements of the action against Meta:
CPC authorities identified several practices that raise concern and could potentially be considered unfair and breach the Unfair Commercial Practices Directive and the Unfair Contract Terms Directive:
- Misleading consumers by using the word ‘free’ while, for users who do not want to subscribe for a fee, Meta requires them to accept that Meta can make revenue from using their personal data to show them personalised ads;
- Confusing users by requiring them to navigate through different screens in the Facebook/Instagram app or web-version and to click on hyperlinks directing them to different parts of the Terms of Service or Privacy Policy to find out how their preferences, personal data, and user-generated data will be used by Meta to show them personalised ads;
- Using imprecise terms and language, such as “your info” to refer to consumers’ personal data or suggesting that consumers who decide to pay will not see ads at all, while they might still see ads when engaging with content shared via Facebook or Instagram by other members of the platform;
- Pressurising consumers who used Facebook/Instagram free of charge until the new business model was introduced, and for whom Facebook/Instagram often constitute a significant part of their social lives and interactions to make an immediate choice, without giving them sufficient time to assess how that choice might affect their contractual relationship with Meta, by not letting them access their accounts before making their choice.
Next Steps
Meta has until 1 September 2024 to reply to the points above. If Meta does not take the necessary steps to solve the concerns raised, CPC authorities can decide to take enforcement measures, including sanctions.
