Meta Risks Sanctions Over 'Sneaky' Ad-Free Plans Confusing Users, EU Says

An anonymous reader quotes a report from Ars Technica: The European Commission (EC) has finally taken action to block Meta's heavily criticized plan to charge a subscription fee to users who value privacy on its platforms. Surprisingly, this step wasn't taken under laws like the Digital Services Act (DSA), the Digital Markets Act (DMA), or the General Data Protection Regulation (GDPR). Instead, the EC announced Monday that Meta risked sanctions under EU consumer laws if it could not resolve key concerns about Meta's so-called 'pay or consent' model. Meta's model is seemingly problematic, the commission said, because Meta 'requested consumers overnight to either subscribe to use Facebook and Instagram against a fee or to consent to Meta's use of their personal data to be shown personalized ads, allowing Meta to make revenue out of it.' Because users were given such short notice, they 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,' the EC said. To protect consumers, the EC joined national consumer protection authorities, sending a letter to Meta requiring the tech giant to propose solutions to resolve the commission's biggest concerns by September 1.

That Meta's 'pay or consent' model may be 'misleading' is a top concern because it uses the term 'free' for ad-based plans, even though Meta 'can make revenue from using their personal data to show them personalized ads.' It seems that while Meta does not consider giving away personal information to be a cost to users, the EC's commissioner for justice, Didier Reynders, apparently does. 'Consumers must not be lured into believing that they would either pay and not be shown any ads anymore, or receive a service for free, when, instead, they would agree that the company used their personal data to make revenue with ads,' Reynders said. 'EU consumer protection law is clear in this respect. Traders must inform consumers upfront and in a fully transparent manner on how they use their personal data. This is a fundamental right that we will protect.' Additionally, the EC is concerned that Meta users might be confused about how 'to navigate through different screens in the Facebook/Instagram app or web-version and to click on hyperlinks directing them to different parts of the Terms of Service or Privacy Policy to find out how their preferences, personal data, and user-generated data will be used by Meta to show them personalized ads.' They may also find Meta's 'imprecise terms and language' confusing, such as Meta referring to 'your info' instead of clearly referring to consumers' 'personal data.' A Meta spokesperson said in a statement: 'Subscriptions as an alternative to advertising are a well-established business model across many industries. Subscription for no ads follows the direction of the highest court in Europe and we are confident it complies with European regulation.'

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