"Pay for privacy" model raises concerns The EU has made Meta take action to improve

The European Union's consumer protection agency on Monday ordered Facebook's parent company Meta to take steps to allay European consumer groups' concerns about Meta's platform's "pay or consent" business model or face further action from authorities.

Late last year, Meta launched a new "pay or consent" model in the European Union, which means that Facebook and Instagram users must pay to avoid having their private information collected by Meta's systems, or agree to share their private information to continue using the platforms for free. Several consumer groups in several European countries, including France and Spain, later complained to the European Union's Consumer Protection Cooperation Network (CPC).

The CPC sent a letter to Meta on Monday asking it to make changes to the "pay or agree" model, arguing that it could be unfair and illegal.

According to the letter, Meta misleads consumers by saying "free," but users who don't want to pay actually have to agree to Meta using their personal information to show them personalized ads. To understand how Meta uses their personal information, users must look for and click on links in the Facebook and Instagram apps or websites to view different sections of the Terms of service or privacy policy, which can be confusing for consumers.

In addition, Meta is also accused of using vague wording, such as suggesting that paying consumers will not see ads at all, but they may still see ads while browsing content shared by other users.

The letter asks Meta to respond by September 1 and propose a solution. "If Meta does not take the necessary steps to address these concerns, CPC authorities may decide to take enforcement action, including sanctions," said the European Commission, which coordinated the action with the CPC.

In response, a Meta spokesperson insisted that the company has always complied with the relevant regulations. "subscriptions, as an alternative to advertising, are a well-established business model in many industries. The ad-free subscription follows the guidance of the Supreme Court of Europe and we believe it is in compliance with European legislation."