Misled?

EU consumer protection authorities examine Meta payment model

The authorities are investigating whether Meta may have used misleading or aggressive practices.

(Bild: stock.adobe.com/Koshiro)

European consumer protection authorities are taking a critical look at the introduction of the payment model at the US internet company Meta. According to the authorities, users on Facebook and Instagram may not have been truthfully, clearly and sufficiently informed about this.

The background to this is that in 2023, Meta gave its users the choice of either paying for Facebook and Instagram or consenting to their data being used for personalized advertising, as the EU Commission announced.

According to the statement, the authorities are investigating, among other things, whether Meta may have used misleading or aggressive practices. Consumers may have been under undue pressure "to choose quickly between the two models for fear of losing access to their accounts and contact network immediately". It is also questionable whether the information provided enabled consumers to understand how their decision would affect their rights.

The consumer protection authorities sent their concerns to Meta by letter via the so-called Consumer Protection Cooperation Network (CPC Network). The EU Commission coordinates the work in such cross-border cases. The European consumer protection organization Beuc welcomed the authorities' action.

Users misled?
In its communication, the EU Commission lists four points with examples. According to this, users could have been misled by the word "free", although Meta uses their data for personalized advertising and thus earns money. Users may also have been confused by being prompted to click through various windows and links to find out how Meta uses their data.

Furthermore, the impression may have been created that paying customers would no longer see any advertising at all, even though they may still encounter advertising on the platforms. Pressure could also have been exerted on users by not giving them enough time to check how this decision would affect their contractual relationship with Meta. They would not be granted access to their accounts until they had made their decision.

Meta's move
Meta now has until September 1 to respond to the allegations. Regardless of the letter that has now been sent, the EU Commission is currently investigating the so-called "pay or consent" model on the basis of new strict EU legislation on the control of large tech companies.

According to the Brussels authority, the fact that Facebook and Instagram users have to choose between the monthly fee and a free version with personalized advertising is incompatible with EU law, among other things.