European watchdogs have issued a reprimand to Meta Platforms, the parent company of Facebook, accusing it of misleading consumers about the “free” and paid versions of Facebook and Instagram. These allegations arise amid efforts by Meta to comply with stringent European privacy regulations. Since November of the previous year, users on both platforms have had the option to choose between a free version, which includes personalized advertising, and a paid version devoid of ads. This strategy was intended to align with the European privacy law.
However, according to the European network of consumer authorities and the European Commission, Meta still violates consumer protection laws. The term “free” is particularly misleading, as it suggests that users do not pay for the service. Yet, those who opt for this version must consent to Meta monetizing their personal data through targeted advertisements.
Moreover, the regulators criticize the opacity of Meta’s data handling disclosures, which are reportedly hard to locate on both the websites and apps of Facebook and Instagram. The watchdogs also decry the use of evasive language, pointing out that terms like “your info” obscure the fact that personal data is being collected.
Adding to the controversy, Meta is accused of pressuring users into making quick decisions about their subscription types. Failure to choose results in denied access to their Facebook or Instagram accounts, placing significant pressure on individuals who rely on these platforms for social interaction. This, the regulators argue, could lead to poorly informed and hasty decisions by users.
Meta has been given a deadline until September 1 to respond and take corrective action. Should the company fail to comply, the regulators may proceed with enforcement actions. This situation highlights ongoing tensions between large tech companies and European authorities over privacy and consumer rights.