EU: Meta Advertising Its Services As ‘Free’ Is Misleading

The EU Commission is continuing its crackdown on Big Tech, this time targeting Meta’s use of the word “free” to describe its services.

Meta, along with Google and many other internet platforms, provide “free” services in exchange for using the customer as the product. The platforms use the customer’s data, including sometimes sensitive information, as the basis for targeted advertising.

The EU’s Digital Markets Act (DMA) regulate how companies can use consumer data, and require them to provide an option that preserves consumer privacy. In response, Meta unveiled paid options in the EU, giving users the option to pay for an ad-free experience. The EU Commission previously ruled that this binary choice was in violation of the DMA, and that Meta needed to provide a free, ad-based option that would use less personal data and serve generic ads, rather than personalized ones.

In its latest ruling, the Commission’s Consumer Protection Cooperation (CPC) Network said Meta is misleading consumers with by the use of its “free” label.

• Misleading consumers by using the word ‘free’ while, for users who do not want to subscribe against a fee, Meta requires them to accept that Meta can make revenue from using their personal data to show them personalised ads.

The CPC also took issue with how difficult Meta makes it to find the Terms of Service and understand how personal data will be used, as well as continuing to show ads to accounts that have paid to not see them.

• Confusing users by requiring them to navigate through different screens in the Facebook/Instagram app or web-version and to click on hyperlinks directing them to different parts of the Terms of Service or Privacy Policy to find out how their preferences, personal data, and user-generated data will be used by Meta to show them personalised ads;
• Using imprecise terms and language, such as ‘your info’ to refer to consumers’ ‘personal data’ or suggesting that consumers who decide to pay will not see ads at all, while they might still see ads when engaging with content shared via Facebook or Instagram by other members of the platform;
• Pressurising consumers who have always used Facebook/Instagram free of charge until the new business model was introduced, and for whom Facebook/Instagram often constitute a significant part of their social lives and interactions to make an immediate choice, without giving them a pre-warning, sufficient time, and a real opportunity to assess how that choice might affect their contractual relationship with Meta, by not letting them access their accounts before making their choice.

Meta has until September 1 to reply and propose solutions. If Meta does not take appropriate measures to rectify the situation, “CPC authorities can decide to take enforcement measures, including sanctions.”

“We will not stand by and watch some sneaky practices that mislead consumers,” said Věra Jourová, Vice-President for Values and Transparency. “We are proud of our strong consumer protection laws which empower Europeans to have the right to be accurately informed about changes such as the one proposed by Meta. In the EU, consumers are able to make truly informed choices and we now take action to safeguard this right.”

“Consumers must not be lured into believing that they would either pay and not be shown any ads anymore, or receive a service for free, when, instead, they would agree that the company used their personal data to make revenue with ads,” added Didier Reynders, Commissioner for Justice. “EU consumer protection law is clear in this respect. Traders must inform consumers upfront and in a fully transparent manner on how they use their personal data. This is a fundamental right that we will protect.”

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