The European Consumer Organisation (BEUC), a prominent consumer advocacy group, has called on the European Union authorities to take action against Meta Platforms, alleging that the company's revised pay-or-consent policy violates EU law.
According to BEUC, Meta's updated policy fails to address the significant concerns previously raised by consumer advocates about Meta's original approach. The organisation argues that the policy potentially breaches consumer and data protection regulations, as well as the Digital Markets Act.
Initially introduced in November 2023, Meta's fee-based service required users of Facebook and Instagram to either consent to their personal data being processed for advertising purposes or pay a fee to avoid receiving targeted advertisements.
The original policy elicited strong opposition from consumer groups and civil society organisations. Subsequently, BEUC and 19 of its members lodged formal complaints with consumer protection authorities, accusing Meta of engaging in unfair business practices. In February 2024, further complaints were submitted concerning the legality of the consent Meta was acquiring from its users.
These actions prompted European authorities to launch investigations, and by July 2024, the European Commission determined that Meta's policy did not adhere to the Digital Markets Act. Additionally, consumer protection authorities raised concerns about potential violations of EU consumer law.
Toward the end of 2024, Meta introduced a revised version of its pay-or-consent policy. However, BEUC and its affiliates maintain that this latest iteration still contravenes EU law on multiple fronts.
Consumer advocacy groups assert that Meta employs deceptive practices, unclear terms, and a confusing interface design to nudge users towards the company's preferred choices. They argue that Meta does not adequately ensure that users can freely consent to data processing, fails to minimise its data collection practices, and diminishes service quality for users who opt out of data use for advertising.
Agustín Reyna, Director General of BEUC, stated, "European consumers should see through the superficial adjustments Meta has made to its year-old pay-or-consent policy. In our assessment, the tech giant continues to fall short of providing Facebook and Instagram users with a fair choice, and the company is attempting to superficially comply with EU legal standards while still steering users towards its behavioural advertising system. It's crucial for consumer and data protection authorities, along with the European Commission, to swiftly investigate Meta's latest policy and implement effective measures to safeguard consumers if necessary."
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