European Commission accuses Meta of breaching EU consumer law

Meta is now being investigated by the European Commission after being accused of misleading customers and potentially violating EU consumer protection laws. On Monday, consumer protection authorities issued a warning to Meta regarding a 2023 policy change that required users to pay to avoid targeted advertisements.

The Commission criticised Meta’s approach to advertising on Facebook earlier this month, and the company is now facing further scrutiny from the Consumer Protection Cooperation Network, which oversees the enforcement of EU consumer protection laws. 

The agency stated that European users were “misled,” “confused,” and “pressured” by the abrupt introduction of the “pay or consent” model. 

This model charges users to opt out of data processing. The allegations were detailed in a letter sent to Meta, the parent company of Facebook, Instagram, and WhatsApp, adding to ongoing criticisms of the company’s practices.

The network accused Meta of breaching European consumer protection laws, pointing out that the company’s interface made it difficult for users to understand the Terms of Service, leading to confusion about what data processing they were consenting to. 

The immediate ultimatum added pressure on users, and the offer may have been misleading, as Meta implied that paying users would not see any advertisements, which the network claims is not true.

Activists also claim that the “pay or consent” model infringes on the right to online privacy. Earlier this month, the European Commission declared that Meta’s advertising approach does not comply with the Digital Markets Act (DMA) and concurrently initiated an investigation for potential violations of the Digital Services Act (DSA). 

Meta has been given until September to respond to the letter and could face sanctions if wrongdoing is confirmed and no satisfactory solutions are provided. National inquiries have also begun in Ireland, where Meta’s EU headquarters are located. 

Meta recently claimed that its advertising model is compliant with EU law, with a spokesperson saying in a statement: “Subscription for no ads follows the direction of the highest court in Europe and complies with the DMA.”