EU tells Meta that Facebook and Instagram's 'pay or accept' model may violate consumer protection law
The European Union (EU) is investigating Meta, a paid ad-free service, for forcing users to make an unfair choice between paying money or allowing ads to collect their personal information. It has now been revealed that the EU consumer protection authority has sent a letter to Meta, alleging that this 'consent-or-pay' model may violate consumer protection law.
Commission and national authorities take action against Meta
When Meta offered a plan to remove ads for 9.99 euros (about 1,700 yen) per month, the European Commission requested information from Meta under the Digital Services Act, and then the European Data Protection Board began an investigation, claiming that this was like holding personal information hostage and demanding a ransom. The European Data Protection Board criticized Meta's plan for not offering any option to prevent the collection of information, even though 'targeted advertising,' which selects advertisements to be displayed based on user information, is directly linked to personal information. Based on this view, the European Data Protection Board announced its view that 'Meta does not comply with the EU General Data Protection Regulation (GDPR).'
EU advises Meta to stop 'pay for ads', mandates free 'third option' that doesn't use personal information - GIGAZINE
The European Commission then launched a preliminary investigation, stating that Meta's Consent or Pay model does not comply with Article 5, paragraph 2 of the EU Digital Markets Act. Article 5, paragraph 2 stipulates the requirements for platforms to combine personal information they have obtained with third-party services, and requires that platforms must obtain user consent before engaging in such activities. If consent cannot be obtained, the platform must deliver less relevant ads, but Meta only offered two options: 'display relevant ads or nothing at all,' which is considered to be in violation of the law.
The EU Consumer Protection Cooperation Network then investigated Meta and concluded that Meta may be in violation of EU consumer protection law, providing the following four reasons:
◆1: Meta requires users who do not want a paid plan to accept using their personal information to display advertisements to increase Meta's revenue.
◆2: Meta has provided an information page to inform users of how their personal information is being used, but the web and app versions direct users to completely different pages, and include links to pages that are different from the descriptions, confusing users.
◆3: The company uses inaccurate terms and phrases such as 'your info' to describe consumers ' personal data, and suggests that paying users will not see any ads at all, when in fact ads may still appear on paid plans.
◆4: The company refused to allow users who had previously used Facebook and Instagram for free to access their accounts unless they chose a plan, forcing them to make an immediate choice without giving them prior warning, sufficient time or a substantial opportunity to assess how the choice would affect their contractual relationship with Meta.
Based on these four points, the Consumer Protection Cooperation Network has sent a letter to Meta. Meta must confirm that the Consent or Pay model does not violate EU consumer protection law and propose a solution by September 1, 2024. If Meta does not take these measures, the Consumer Protection Cooperation Network may take enforcement action against Meta.
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in Posted by log1p_kr