Meta's Pay-Or-Consent Policy Faces Fresh Criticism From EU Consumer Group

The European Consumer Organisation (BEUC) has raised concerns with European Union authorities regarding Meta Platforms Inc. META and its latest "pay-or-consent" data policy.

The group argued that this new policy may breach consumer protection laws, data privacy regulations, and the Digital Markets Act.

BEUC pointed out that the revised model introduced by Meta might still infringe upon several key legal requirements, despite changes made to it at the end of 2024.

In late 2024, Meta introduced a revised version of its pay-or-consent policy, following criticism from consumer groups and civil society organizations regarding the original model.

The first iteration, launched in November 2023, forced Facebook and Instagram users to choose between allowing their personal data to be used for targeted ads or paying a subscription fee to opt out of data-driven advertisements.

Even with the updates, BEUC contends that the revised policy does not resolved the key problems highlighted in the earlier version.

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Consumer advocates have criticized Meta for employing misleading tactics, unclear language, and a confusing interface that steers users toward the company's preferred choice.

Additionally, BEUC claimed the policy does not offer users a truly free decision regarding the handling of their personal data, as Meta still collects significant amounts of user information.

BEUC also highlighted a major concern regarding the reduced services available to users who opt out of sharing their personal data.

"European consumers should not be fooled by the cosmetic changes Meta applies to its one-year-old pay-or consent policy. In our view, the tech giant fails to address the fundamental issue that Facebook and Instagram users are not being presented with a fair choice and is making a weak bid to argue it is complying with EU law while still pushing users towards its behavioural ads system,” said Director General of the European Consumer Organisation (BEUC), Agustín Reyna.

“It is important for consumer and data protection authorities and the European Commission to quickly investigate Meta's latest policy and, if needed, take immediate and effective measures to protect consumers."

Price Action: META shares are trading higher by 0.615% at $627.33 in premarket at the last check Thursday.

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