Jurisdiction(s):
European Union

EU CPC Network challenges Meta's 'pay or consent' advertising model as misleading; DMA probe questions binary choice and lack of equivalent, less-personalised service

Published on: 24 July 2024

Published by a Law360 reporter

Legal News

Article summary

The Consumer Protection Cooperation (CPC) Network (which enforces EU consumer protection laws)

The Consumer Protection Cooperation (CPC) Network has informed Meta that it is worried about the firm’s demand that consumers either agree to their personal data being used for personalised advertising or pay for a subscription. The action, led by France’s consumer authority and co-ordinated by the commission, argues that the pay-or-consent model introduced in the EU in November 2024 may mislead people by using the word ‘free’, while Meta asks them to accept that it can generate revenue by using their personal data to display personalised ads. The CPC network lodged its complaint alongside the European Commission’s ongoing examination of whether Meta’s pay-or-consent approach satisfies the obligations of the EU Digital Markets Act (DMA). That law requires Meta to secure users’ consent when it plans to combine or use their personal data across different core platform services. This complaint is distinct from the European Commission’s probe. The CPC network is also concerned that users must wade through multiple screens and hyperlinks in the Facebook and Instagram apps or their web versions to uncover terms that set out how Meta will use their data to target them...

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