Meta could face sanctions in the EU for its paid ad-free tier

Meta’s “consent or pay” policy continues to generate friction with the EU. Previously, the EDPB recommended that Mark Zuckerberg’s company make adjustments that give more alternatives to users. Now, Meta could be exposed to sanctions for its paid “ad-free” tier in the EU in a new investigation.

In some regions, Meta offers a paid plan for users who do not want to receive targeted ads based on their activity. The creation of the tier was to try to comply with EU privacy requirements. However, it offers limited possibilities to people who do not want their activity to be tracked. Currently, they can only choose between paying or not using the service.

This model still does not convince the EU, which wants more alternatives where folks can use the service for free without Meta tracking their activity. If found guilty, the company could get a penalty of up to 10% of its annual gross revenue.

Meta facing a new investigation in the EU for its paid ad-free tier

Now, in a separate investigation, the Consumer Protection Cooperation (CPC) network has sent a letter to Meta describing how the company could be violating current laws. Meta has until September 1 to respond to the CPC requirements. Otherwise, they could begin to receive sanctions for non-compliance. The CPC letter addresses shady practices related to the Meta’s paid ad-free tier available in the EU, the EEA (European Economic Area), and Switzerland.

However, there are also allegations about the ToS for the free tier. For example, the company promotes that people can use its services for free, but it does not make it clear that it will monetize their activity through targeted ads.

Meta’s ToS could be imprecise or misleading

Regarding the paid tier, the letter claims that it includes “imprecise terms and language.” In this case, the ToS makes users believe that they will not receive ads at all. However, they could still get ads “when engaging with content shared via Facebook or Instagram by other members of the platform.” Additionally, users are being forced to decide immediately about the handling of their data. Otherwise, they will not be able to continue using their accounts. This could pressure them to agree to the use of their data, without letting them think about the implications.

The latter appears to be one of the key allegations against Meta. After all, many might fear losing their accounts and contacts if they do not accept the free-use conditions. This could lead them to make a hasty decision without other alternatives. Perhaps offering more time to decide while they can access their accounts, and a clearer and more concise ToS are potential solutions.