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Meta model ‘may breach EU consumer law’

The EU’s Consumer Protection Cooperation (CPC) Network has written to Meta about concerns that its ‘pay or consent' model may be in breach of EU consumer law.

The action arises from Meta’s request last year to users to either subscribe to use Facebook and Instagram for a fee, or consent to Meta's use of their personal data to be shown personalised ads.

The CPC Network comprises authorities responsible for the enforcement of EU consumer-protection laws. With the co-ordination of the European Commission, it can take action to address cross-border issues at EU level.

‘Undue pressure’

The commission said that consumer-protection authorities had identified several practices in Meta’s new business model that could potentially be considered unfair and contrary to the Unfair Commercial Practices Directive (UCPD) and the Unfair Contract Terms Directive (UCTD).

These include concerns about whether the social-media firm provided users with “true, clear and sufficient information” on the impact of the changes.

The authorities are concerned that many consumers may have been exposed to “undue pressure” to choose rapidly between the two models, “fearing that they would instantly lose access to their accounts and their network of contacts”.

DMA probe

The commission points out that the action announced today (22 July) focuses only on EU consumer law, and is separate from an ongoing investigation of Meta’s ‘pay or consent’ model under the Digital Markets Act (DMA). Ireland’s Data Protection Commission is also assessing Meta’s practices under the GDPR.

Meta has until 1 September to reply to the CPC Network’s letter, and to propose solutions.

“We will not stand by and watch some sneaky practices that mislead consumers,” said commissioner Věra Jourová.

“We are proud of our strong consumer-protection laws, which empower Europeans to have the right to be accurately informed about changes such as the one proposed by Meta,” she added.