EU law

EU Commission Publishes Biennual Report on Consumer Protection

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

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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Irish DPC to investigate X’s Grok AI training on user data without consent

The Irish Data Protection Commission is investigating X’s practice of sharing user data with Elon Musk’s AI startup, xAI, without explicit consent. X implemented a feature that opts users into data sharing by default, without prior notice. Users can change this setting only on the desktop version, with a mobile app option in development. The DPC had been questioning X for months and expressed surprise at the sudden rollout, which may lead to a GDPR investigation and possible fines. This situation mirrors Meta’s recent GDPR-related halt on similar AI data usage in Europe.

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noyb Files Complaint Against Xander for GDPR Violations in RTB

On July 9, 2024, None Of Your Business (noyb.eu) filed a complaint with the Italian Data Protection Authority (Garante) against Xander Inc. for alleged GDPR violations. NOYB claims Xander violated several GDPR articles by mishandling user data and failing to comply with access and erasure requests. Xander, which operates a Real Time Bidding platform, is accused of collecting sensitive personal information and failing to adequately identify and respond to data subjects. The complaint requests Garante to enforce data protection rights, correct inaccurate profiles, and impose fines on Xander.

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Danish DPA Reports Municipalities’ Steps Toward Compliance in the Google Chromebook Case

The Danish Data Protection Authority (Datatilsynet) reports that municipalities are taking steps to comply with the orders issued in January 2024. KL (Local Government Denmark), representing 52 municipalities, announced that from August 1, 2024, municipalities will stop sharing personal data with Google for purposes deemed unlawful by the Authority. Datatilsynet noted contract adjustments ensuring data processing strictly follows municipal instructions, except as required by EU law. Allan Frank, IT security specialist at Datatilsynet, highlighted remaining issues. The Authority awaits an opinion from the European Data Protection Board on documentation of subprocessors to make a final assessment.

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