Meta is now also being targeted by European consumer protection authorities

The social media giant Meta has now also received mail from the European consumer protection authorities because of its "pay or consent" model. The Consumer Protection Cooperation Network (CPC Network) listed the points on which the "pay or consent" approach of the company behind Facebook and Instagram violates EU consumer protection law. The "pay or consent" approach gives users the choice of either paying for Facebook and Instagram or consenting to the use of their data for personalized advertising and commercial purposes.

"The consumer protection authorities examined several elements that could constitute misleading or aggressive practices, in particular whether Meta provided consumers with truthful, clear and sufficient information in advance," the European Commission, which coordinated the action, announced on Monday. It is also a question of whether users could have understood in advance how their choice would affect their consumer rights.

Criticism for misleading and pressure

The authorities criticize that the word "free" misleads users, as the company collects and processes personal data as an alternative to the payment model - in this case, they ultimately pay with their data, which Meta uses to earn 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 in order to find out how their data is used in the first place. The terms are also vague and imprecise. As an example, the CPC Network cites "your information" to refer to "personal data".

The company also gives the impression that the payment option means customers are rid of advertising. At the same time, advertising could still pop up on their screen, for example about 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 own account have put consumers under pressure. Until the introduction of the new model, the services were free of charge and "often formed an essential part of users' social lives and social interactions". The fact that access to the account was blocked until a decision was made created pressure to make a decision quickly. Consumers were unable to consider and weigh up their decision.

Fourth investigation into the model

"We will not stand idly by while consumers are misled by dubious practices," said Věra Jourová, Vice-President for Values and Transparency. "We are proud of our strong consumer protection rules, under which consumers have the right to be properly informed about changes such as those proposed by Meta." Meta is now required to respond and propose solutions by September 1. If the company does not respond, there is a risk of penalties in this case too.

The blue letter from the EU consumer protection agency is not the only "pay or consent" case Meta has faced. The European Commission is already conducting an ongoing investigation into a possible breach 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 breach of the General Data Protection Regulation (GDPR).

The CPC network is a European association of ministries and authorities responsible for 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 relevant ministries of the federal states and authorities such as the Federal Environment Agency, trade supervisory authorities and media authorities are also represented in the CPC network.

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