European consumer regulators, including the ACM, are challenging Meta over a possible violation of consumer law. The European Commission is coordinating the regulators' action. They see Meta pressuring consumers to choose between a paid and a so-called 'free' version of Facebook or Instagram, without consumers having the information to make the right choice. When choosing the so-called 'free' version, they gave Meta permission to show them personalized ads based on their (personal) data.
The action was launched immediately after the introduction of this model, partly in response to a complaint by the European consumer organization BEUC, of which the Consumers' Association is a member. The French regulator is leading this EU-wide action.
The regulators examined whether Meta provided users with sufficiently accurate and clear information in advance to enable them to assess the consequences of their choice of a paid or "free" account. They also looked at the pressure users may have felt to quickly choose between the two options, including because they feared losing access to their account and contacts.
European regulators see several practices in the rollout of the subscription model that may violate rules protecting consumers from unfair practices.
The most important are:
Misleading consumers by using the word "free. While Meta demands that users who use Facebook/Instagram without charge thereby accept that Meta is making money from the use of their (personal) data by showing personalized ads.
The information about how Meta uses consumer preferences and (personal) data for personalized ads is hard to find. Only after much clicking through in the app or on the website can you find the information in the terms and conditions and privacy policy.
The use of concealing language, such as "your info" in reference to consumers' personal data.
By pressuring consumers to choose a particular subscription form immediately and not allow access to their account until they have made a choice, when Facebook/Instagram is an important part of their social interactions.
Meta has until Sept. 1, 2024, to respond to the letter from the European Consumer Protection Cooperation (CPC) network of consumer authorities and the European Commission (which is coordinating this action) and take action. If Meta does not take the necessary steps, the CPC authorities may each proceed with enforcement.
This joint action by the CPC Network focuses on assessing Meta's practices under EU consumer law. In addition, other European investigations into the rollout of this model are ongoing: 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 General Data Protection Regulation rules. Moreover, the European Data Protection Board published an opinion in April 2024 stating that very large online platforms should not force users to be tracked.
