EU consumer authorities confront Meta with its provision of information surrounding its introduction of paid accounts
The European consumer authorities, including the Netherlands Authority for Consumers and Markets (ACM), have confronted Meta with a possible violation of consumer law. The European Commission is coordinating this joint action of the consumer authorities. They see Meta putting pressure on consumers to choose between a paid and a supposedly ‘free’ version of Facebook or Instagram, without consumers having the information to be able to make an informed decision. When choosing the supposedly ‘free’ version, consumers gave Meta permission to present them with personalized ads based on their data (including their personal data).
The action was launched right after this model had been introduced, in part following a complaint filed by the European consumer organization BEUC, which the Dutch Consumers’ Association (in Dutch: Consumentenbond) is a member of. The French consumer authority is leading this EU-wide action.
The consumer authorities have examined whether Meta gave users sufficient correct and clear information in advance for them to be able to assess the implications of their choice for a paid or ‘free’ account. In addition, they also looked into the pressure that users may have experienced to make a quick decision between both options, also because they feared losing access to their accounts and contacts.
Most important conclusions
The European consumer authorities see various practices in connection with the rollout of the subscription model, which may constitute violations of the rules that protect consumers against unfair practices.
The most important ones are:
- Misleading consumers by using the word ‘free’. Meta demands that users using Facebook/Instagram free of charge must accept that Meta earns money from the use of their data (including personal data) by presenting them personalized ads.
- The information explaining how Meta uses preferences and data (including personal data) of consumers for personalized ads is difficult to find. Only after multiple clicks in the app or on the website will consumers be able to find the information in the general terms and conditions, and in Meta’s privacy policy.
- The use of veiled terms, such as ‘your info’ as a reference to the consumer’s personal data.
- Putting pressure on consumers to choose a certain type of subscription immediately, and not giving access to their accounts before they have made a choice, even though Facebook/Instagram is a critical part of their social interactions.
Follow-up steps
Meta will have until 1 September 2024 to respond to the letter of the European CPC network of consumer authorities (Consumer Protection Cooperation) and the European Commission (which coordinates this action), and to take action. If Meta fails to take the necessary steps, the CPC authorities may move to take enforcement action.
This joint action of the CPC network focuses on the assessment of Meta’s practices under EU consumer law. Next to this joint action, other European investigations into the rollout of this model are also taking place: the European Commission is investigating a possible violation of the Digital Markets Act and the Digital Services Act; the Irish regulator is investigating a possible violation by Meta of the General Data Protection Regulation (GDPR). Moreover, the European Data Protection Board in April 2024 published an opinion in which it said that very large online platforms cannot force users to let them be followed online.