Andreea Lisievici

EU Commission Publishes Biennual Report on Consumer Protection

Consumer protection, EU law |

On 25 July 2024, the European Commission released its biennial report on the actions carried out under the Consumer Protection Cooperation (CPC) Regulation. The report highlights a 41% increase in mutual assistance requests, with 440 exchanges. Key enforcement actions focused on dark patterns, misleading price reductions, and influencer marketing. The report also emphasized the importance of digital market regulation, green transition, and consumer resilience amid multiple crises. Future market trends include the impact of AI, greenwashing, and online fraud.

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US Senators Urge FTC Crackdown on Automakers’ Data Sharing

Enforcement, FTC, United States |

On July 26, 2024, U.S. Senators Ron Wyden and Edward J. Markey called on the FTC to investigate automakers’ unauthorized sharing of driver data with data brokers. Wyden’s investigation revealed that GM, Honda, and Hyundai shared driving and location data with Verisk Analytics without drivers’ informed consent. Hyundai received over $1 million from Verisk for data from 1.7 million cars, while Honda and GM also engaged in similar practices. The senators condemned these actions, urging the FTC to hold automakers and data brokers accountable for privacy violations and deceptive practices.

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European Commission Coordinates Action Against Meta on ‘Pay or Consent’ Model

Consent or Pay, Meta |

The European Commission, in collaboration with the Consumer Protection Cooperation Network, has taken coordinated action against Meta regarding its ‘pay or consent’ model. This model requires users to either pay for access to Facebook and Instagram or consent to personalized ads by Meta using their personal data. The CPC initiated this move after determining that the model may breach EU consumer laws. Key concerns include misleading information, undue pressure on consumers, and potential violations of the Unfair Commercial Practices Directive and the Unfair Contract Terms Directive. Meta must respond by 1 September 2024, or face potential sanctions.

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FTC Investigates Surveillance Pricing Practices

Enforcement, FTC |

The Federal Trade Commission (FTC) issued orders to eight companies to gather detailed information on surveillance pricing practices. These companies, including Mastercard and JPMorgan Chase, use personal data such as browsing history and credit scores to set individualized prices for goods and services. The FTC aims to understand the impact of these practices on privacy, competition, and consumer protection. Chair Lina M. Khan emphasized the risks to consumer privacy and potential price exploitation. The investigation uses the FTC’s 6(b) authority to conduct comprehensive studies without specific law enforcement purposes.

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DOJ Accuses TikTok of Data Misuse on Sensitive Topics

Enforcement, TikTok |

The U.S. Department of Justice accused TikTok of gathering and sharing U.S. user data on contentious issues like abortion and gun control with its Chinese parent company, ByteDance. Court documents reveal that TikTok used an internal system called Lark to communicate and transfer sensitive data to ByteDance employees in China. The DOJ argues that TikTok’s data handling practices pose significant national security risks and could allow for covert content manipulation by the Chinese government. TikTok disputes these claims, asserting that the potential ban would violate the First Amendment. This case is part of a broader legal battle over TikTok’s future in the U.S.

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