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EU consumer authorities challenge Meta’s pay-or-consent advertising model under UCPD/UCTD; coordinated CPC action alongside DMA/DSA/GDPR scrutiny; Meta response due 1 September 2024

Published on: 24 July 2024

Published by an LexisNexis Ireland - Commercial expert

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Article summary

Commission coordinates action by national consumer protection authorities against Meta on 'pay or consent' model

Today, the Consumer Protection Cooperation (CPC) Network dispatched a letter after raising doubts that Meta’s ‘pay or consent’ approach could infringe EU consumer rules. The Commission coordinated the move, which is headed by the French Directorate General for Competition, Consumer Affairs and Fraud Prevention. The initiative began in 2023, straight after Meta suddenly asked users to either pay a subscription to access Facebook and Instagram or agree to Meta processing their personal data to deliver personalised advertising from which Meta profits (‘pay or consent’).

Consumer protection bodies reviewed several aspects that may amount to misleading or aggressive practices, notably whether Meta offered consumers upfront information that was accurate, transparent and sufficient. They examined if such information enabled people to grasp the consequences of choosing to pay, or to accept the commercial processing of their personal data, for their consumer rights. In addition, CPC authorities worry that many users may have been subjected to undue pressure to decide quickly between the two options, fearing they would instantly lose access to their accounts...

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