Europe org says Meta breaches consumer laws with its ad-free subscription, files complaint

The European Consumer Organization (BEUC), along with 19 of its members, filed a complaint against Meta for engaging in "unfair commercial practices". This complaint is targeted towards Meta's recent ad-free subscription plan launched in Europe for its Instagram and Facebook platforms. According to Meta, the subscription was announced to comply with the EU's General Data Protection Regulation (GDPR) and the Digital Markets Act which limits how much personal data an online service can take with an ad-supported free version.

Ursula Pachl, Deputy Director General of the BEUC, said:

“The choice the tech giant is currently providing to consumers is unfair and illegal – the millions of European users of Facebook and Instagram deserve far better than this. Meta is breaching EU consumer law by using unfair, deceptive and aggressive practices, including partially blocking consumers from using the services to force them to take a decision quickly, and providing misleading and incomplete information in the process. Consumer protection authorities in the EU must now spring into action and force the tech giant to stop this practice. The company’s approach also raises concerns regarding the GDPR.”

The BEUC claims that Meta is forcing users to "either consent to the processing of their data for advertising purposes by the company or pay in order not to be shown advertisements". It is doing so by blocking their use of Facebook and Instagram until they have selected one option, creating a sense of urgency, which is considered an aggressive practice under European consumer law.

The organization also said that by opting for a paid subscription, consumers may believe that they will receive a privacy-friendly option with less tracking and profiling. However, it is likely that users' data might still be collected for purposes other than ads on Meta's platforms.

Meta's ad-free subscription costs €9.99 a month on the web or €12.99 a month on the Facebook or Instagram iOS and Android apps. Meta says that these prices are in line with what YouTube, Spotify, and Netflix offer as part of their subscriptions in the region.

via: Reuters