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EU officials say Meta may be violating consumer laws with paid ‘ad-free’ subscription

The Real is unhappy with a business model that gives users in the EU, European Economic Area and Switzerland the broad choice of continuing to use Facebook and Instagram with targeted ads without paying anything, or offering an ad-free experience.

Officials from the Consumer Protection Cooperation (CPC) Network — a group of national authorities that enforce EU consumer protection laws — have suggested that Meta may be violating consumer law through its “pay or consent” approach. The Commission, the executive arm of the European Union, .

The CPC Network sent Meta a letter outlining several ways in which it believes the company is violating consumer laws. The company has until September 1 to respond and propose solutions to the officials’ concerns. If CPC officials find that Meta is not taking appropriate steps to resolve the issues, they may take enforcement action against the company, including penalties.

CPC authorities have suggested that Meta misleads users by describing its platforms as free to use if they choose not to pay for a subscription, when in fact Meta monetizes their personal data by showing targeted ads. They further say that Meta “confuses users” by requiring them to access various sections of its privacy policy and terms of service to see how their data is used for personalized ads.

Officials also criticized Meta’s “imprecise terms and language” that suggest subscribers won’t see ads at all, even though they may still appear “when they interact with content shared via Facebook or Instagram by other members of the platform.” They further allege that Meta is pressuring long-time users of Facebook and Instagram without paying “to make an immediate choice, without giving them advance warning, adequate time, and a real opportunity to assess how that choice could impact their contractual relationship with Meta, by not allowing them access to their accounts before they make their choice.”

Meta introduced its “pay or consent” options last year in an effort to preserve its advertising model. CPC officials say they are concerned that “many consumers may be subject to undue pressure to make a quick choice” between consenting to data collection or paying a monthly fee, “out of fear that they would lose immediate access to their accounts and network of contacts.”

This action is separate from other investigations the EU is conducting into Meta over its “pay or consent” model. Earlier this month, the EU said Meta had this approach. If found guilty, Meta could face a fine of up to 10 percent of its global annual turnover.

In addition, the Commission in March requested more information from the company about the “pay or consent” model under the Digital Services Act, another law the bloc designed to rein in the power of big tech companies. Consumer rights groups have also argued that the approach violates the EU’s General Data Protection Regulation.

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