Meta Under Scrutiny for Ad Policy
Meta is facing an investigation by the European Commission over allegations that its “pay or consent” policy, introduced in 2023, may have misled users. This policy required users to pay to avoid targeted ads, raising concerns among consumer protection authorities.
Consumer Confusion and Pressure
The Consumer Protection Cooperation Network, which oversees EU consumer laws, claims that Meta’s abrupt implementation of the “pay or consent” model left European consumers feeling misled, confused, and pressured. The network’s letter to Meta, the parent company of Facebook, Instagram, and WhatsApp, outlines these concerns.
Privacy Rights and Legal Compliance
Critics argue that the “pay or consent” policy infringes on online privacy rights. Earlier this month, the European Commission declared that Meta’s advertising model violates the Digital Markets Act (DMA) and initiated a separate inquiry for non-compliance with the Digital Services Act (DSA). Ireland, home to Meta’s EU headquarters, has also launched national investigations.
Misleading Practices Allegations
The network accuses Meta of violating European consumer protection laws by making its Terms of Service difficult to understand, leading to confusion about data usage consent. The sudden ultimatum given to users added pressure, and the network claims Meta misleadingly implied that no ads would be shown to paying users.
Meta’s Response and Potential Consequences
Meta’s Policy Communications Manager, Matt Pollard, defended the subscription model as a standard practice across many industries and asserted its compliance with European regulations. Meta has until September 1 to respond to the allegations. Failure to provide an adequate solution could result in sanctions.
SOURCE: Ref Image from The Economic Times
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