On 22 July 2024, the European Commission coordinated with the Consumer Protection Cooperation (CPC) Network to address concerns surrounding Meta’s ‘pay or consent’ model. This model demands users to either pay for accessing Facebook and Instagram or consent to personalized ads based on their personal data. The CPC, led by France’s Directorate General for Competition, Consumer Affairs, and Fraud Prevention, began this action in 2023 following Meta’s overnight implementation of the new model.
Key Concerns
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- Misleading Information: Meta’s use of the term ‘free’ misled consumers, as those not subscribing must consent to their data being used for ads.
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- Confusing Processes: Users navigated multiple screens and hyperlinks to understand data usage, complicating their decision-making.
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- Imprecise Language: Terms like ‘your info’ instead of ‘personal data’ created misunderstandings, and even paying users might still see ads via shared content.
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- Undue Pressure: Long-time users, accustomed to free services, were pressured to make immediate choices without adequate time to understand the implications.
The action is part of broader EU and national investigations into Meta’s practices. Separate ongoing investigations include potential breaches of the Digital Markets Act (DMA) and the Digital Services Act (DSA), and the Irish Data Protection Commission’s assessment under GDPR.
Meta has until 1 September 2024 to address the CPC’s concerns and propose solutions. Failure to comply may result in enforcement measures, including sanctions.
See here the press release.
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