EU Warns Meta Over Consumer Protection Violations

The EU Commission is scrutinizing Meta for its 'pay or consent' model, which it claims misleads consumers by labeling services as 'free' when they involve data monetization through targeted ads. Regulators from the Consumer Protection Cooperation (CPC) Network argue that this model violates consumer protection laws and puts undue pressure on users to choose between a paid subscription or consenting to data usage without adequate information. Meta has been given until September 1 to address these concerns or face potential fines. The CPC found that Meta's terms of service are difficult to navigate, making it hard for users to understand their data usage. Additionally, Meta's practice of still showing ads to paying users has drawn criticism for being misleading. EU officials emphasize the need for transparency in how user data is handled, with the CPC noting that consumers should not be misled into believing they can avoid ads entirely with a subscription.