Meta: Difference between revisions - Consumer_Action

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=== United States of America v. Facebook ===

In July 2019, Facebook agreed to pay $5 billion USD and implement corrective measures after it was sued by the Department of Justice and Federal Trade Commission (FTC) for "misleading users about the extent to to which third-party application developers could access users' personal information."<ref>https://www.justice.gov/opa/pr/facebook-agrees-pay-5-billion-and-implement-robust-new-protections-user-information</ref>

In July 2019, Facebook agreed to pay $5 billion USD and implement corrective measures after it was sued by the Department of Justice and Federal Trade Commission (FTC) for "misleading users about the extent to to which third-party application developers could access users' personal information."<ref>[https://www.justice.gov/opa/pr/facebook-agrees-pay-5-billion-and-implement-robust-new-protections-user-information "Facebook Agrees to Pay $5 Billion and Implement Robust New Protections of User Information in Settlement of Data-Privacy Claims"] - justice.gov - 24 Jul 2019</ref>

==== Facebook's Default Privacy Settings Controversy (2010-2018) ====

Facebook's default settings allowed third-party app developers to access not only the data of users who installed their apps, but also the data of those users' friends. While users could opt out of this data sharing, the setting was located separately from the main privacy settings page, making it difficult to find and adjust.<ref name=":0">https://www.justice.gov/opa/press-release/file/1186506/dl</ref>

Facebook's default settings allowed third-party app developers to access not only the data of users who installed their apps, but also the data of those users' friends. While users could opt out of this data sharing, the setting was located separately from the main privacy settings page, making it difficult to find and adjust.<ref name=":0">"[https://www.justice.gov/opa/press-release/file/1186506/dl United States of America v. Facebook, Inc., Case No. 19-cv-2184, Complaint for civil penalities, injunction, and other relief"] PDF - justice.gov - 24 Jul 2019</ref>

After settling with the FTC in 2012 over deceptive privacy practices, Facebook initially added a privacy disclaimer about friend data sharing but removed it four months later. This occurred while continuing the same data-sharing practices that prompted the original FTC investigation, violating the order's prohibition against misrepresenting users' privacy control.<ref name=":0" />

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In July 2020, the Irish Data Protection Authority submitted an inquiry into Meta's Facebook service for transferring its users personal data to the U.S.<ref>[https://www.edpb.europa.eu/news/news/2023/12-billion-euro-fine-facebook-result-edpb-binding-decision_en "1.2 billion euro fine for Facebook as a result of EDPB binding decision"] - edpb.europa.eu - 22 May 2023 </ref> which failed to comply with a 2020 decision<ref>[https://www.nytimes.com/2020/07/16/business/eu-data-transfer-pact-rejected.html "E.U. Court Strikes Down Trans-Atlantic Data Transfer Pact"] - nytimes.com - 16 July 2020</ref> that the company's data was not secure enough. In May 2023, the European Data Protection Board (EDPB) enforced the $1.2 billion euro fine on Meta and an order to cease the "unlawful processing, including storage, in the U.S. of personal data of European users transferred in violation of the GDPR."

In September 2022, the Irish Data Protection Commission (DPC) fined Meta 405 million euros and imposed several "corrective measures" on Meta for its illegal handling of children's Instagram profile data.<ref>https://www.edpb.europa.eu/our-work-tools/our-documents/binding-decision-board-art-65/binding-decision-22022-dispute-arisen_en</ref> Before corrective measures were imposed upon Meta, their Instagram platform publically disclosed email address and phone numbers of children who used the business account feature.

In September 2022, the Irish Data Protection Commission (DPC) fined Meta 405 million euros and imposed several "corrective measures" on Meta for its illegal handling of children's Instagram profile data.<ref>[https://www.edpb.europa.eu/our-work-tools/our-documents/binding-decision-board-art-65/binding-decision-22022-dispute-arisen_en Binding Decision 2/2022 on the dispute arisen on the draft decision of the Irish Supervisory Authority regarding Meta Platforms Ireland Limited (Instagram) under Article 65(1)(a) GDPR] - edpb.europa.eu - 15 Sep 2022</ref> Before corrective measures were imposed upon Meta, their Instagram platform publically disclosed email address and phone numbers of children who used the business account feature.

=== The State of Texas Court v. Meta Platforms ===

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=== "Pay or Consent" Model ===

Meta is ~~currently~~ being investigated for violating ~~Europe~~'s ~~digital competition rules~~ by ~~employing~~ a "pay or consent" model to its Facebook and Instagram platforms, forcing users to pay a monthly subscription for an ad-free version or to accept versions with personalized advertisements.<ref>[https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3582 "Commission sends preliminary findings to Meta over its “Pay or Consent” model for breach of the Digital Markets Act"] - ec.europa.eu - 1 Jul 2024 </ref> ~~By using the free versions~~, users ~~are required~~ to ~~consent to the use of their personal data to serve them relevant advertisements~~.

As of early 2024, Meta is being investigated for violating the EU's Digital Markets Act (DMA) by using a "pay or consent" model to its Facebook and Instagram platforms. forcing users to pay a monthly subscription for an ad-free version or to accept versions with personalized advertisements.<ref>[https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3582 "Commission sends preliminary findings to Meta over its “Pay or Consent” model for breach of the Digital Markets Act"] - ec.europa.eu - 1 Jul 2024 </ref> Launched in late 2023, Meta's model offered European users two options: pay approximately €13 monthly for ad-free access to Facebook and Instagram, or continue using free accounts with personalized advertising.

~~Michael Koenig, a senior official at the European~~ Commission, ~~said Meta must~~ offer users ~~an alternative to “full” ad personalization~~ that ~~“does not rely on this~~ personal data and ~~which is then automatically less personalized and still available to them~~.”<ref>[https://www.~~cnn~~.com/2024/07/01/tech~~/meta~~-eu-~~competition~~-~~rules "Meta accused of breaking European law with its ‘pay or consent’ model~~"] - ~~cnn~~.com - 1 Jul 2024 </ref>

The Commission determined that this binary choice violates DMA regulations, which require "gatekeeper" platforms to offer equivalent alternatives for users who decline personal data collection. The DMA mandates that large tech companies must obtain explicit consent before combining users' personal data across services, and cannot make service access conditional upon such consent.<ref>[https://www.forbes.com/sites/roberthart/2024/07/01/metas-ad-free-subscriptions-for-instagram-and-facebook-break-europes-tech-rules-possibly-drawing-billions-in-fines-eu-says/ "Meta’s Ad-Free Subscriptions For Instagram And Facebook Break Europe’s Tech Rules—Possibly Drawing Billions In Fines, EU Says"] - forbes.com - 1 Jul 2024</ref>

== References ==

@@ Line 29: / Line 29: @@
 === United States of America v. Facebook ===
-In July 2019, Facebook agreed to pay $5 billion USD and implement corrective measures after it was sued by the Department of Justice and Federal Trade Commission (FTC) for "misleading users about the extent to to which third-party application developers could access users' personal information."<ref>https://www.justice.gov/opa/pr/facebook-agrees-pay-5-billion-and-implement-robust-new-protections-user-information</ref>
+In July 2019, Facebook agreed to pay $5 billion USD and implement corrective measures after it was sued by the Department of Justice and Federal Trade Commission (FTC) for "misleading users about the extent to to which third-party application developers could access users' personal information."<ref>[https://www.justice.gov/opa/pr/facebook-agrees-pay-5-billion-and-implement-robust-new-protections-user-information "Facebook Agrees to Pay $5 Billion and Implement Robust New Protections of User Information in Settlement of Data-Privacy Claims"] - justice.gov - 24 Jul 2019</ref>
 ==== Facebook's Default Privacy Settings Controversy (2010-2018) ====
-Facebook's default settings allowed third-party app developers to access not only the data of users who installed their apps, but also the data of those users' friends. While users could opt out of this data sharing, the setting was located separately from the main privacy settings page, making it difficult to find and adjust.<ref name=":0">https://www.justice.gov/opa/press-release/file/1186506/dl</ref>
+Facebook's default settings allowed third-party app developers to access not only the data of users who installed their apps, but also the data of those users' friends. While users could opt out of this data sharing, the setting was located separately from the main privacy settings page, making it difficult to find and adjust.<ref name=":0">"[https://www.justice.gov/opa/press-release/file/1186506/dl United States of America v. Facebook, Inc., Case No. 19-cv-2184, Complaint for civil penalities, injunction, and other relief"] PDF - justice.gov - 24 Jul 2019</ref>
 After settling with the FTC in 2012 over deceptive privacy practices, Facebook initially added a privacy disclaimer about friend data sharing but removed it four months later. This occurred while continuing the same data-sharing practices that prompted the original FTC investigation, violating the order's prohibition against misrepresenting users' privacy control.<ref name=":0" />
@@ Line 47: / Line 47: @@
 In July 2020, the Irish Data Protection Authority submitted an inquiry into Meta's Facebook service for transferring its users personal data to the U.S.<ref>[https://www.edpb.europa.eu/news/news/2023/12-billion-euro-fine-facebook-result-edpb-binding-decision_en "1.2 billion euro fine for Facebook as a result of EDPB binding decision"] - edpb.europa.eu - 22 May 2023 </ref> which failed to comply with a 2020 decision<ref>[https://www.nytimes.com/2020/07/16/business/eu-data-transfer-pact-rejected.html "E.U. Court Strikes Down Trans-Atlantic Data Transfer Pact"] - nytimes.com - 16 July 2020</ref> that the company's data was not secure enough. In May 2023, the European Data Protection Board (EDPB) enforced the $1.2 billion euro fine on Meta and an order to cease the "unlawful processing, including storage, in the U.S. of personal data of European users transferred in violation of the GDPR."
-In September 2022, the Irish Data Protection Commission (DPC) fined Meta 405 million euros and imposed several "corrective measures" on Meta for its illegal handling of children's Instagram profile data.<ref>https://www.edpb.europa.eu/our-work-tools/our-documents/binding-decision-board-art-65/binding-decision-22022-dispute-arisen_en</ref> Before corrective measures were imposed upon Meta, their Instagram platform publically disclosed email address and phone numbers of children who used the business account feature.
+In September 2022, the Irish Data Protection Commission (DPC) fined Meta 405 million euros and imposed several "corrective measures" on Meta for its illegal handling of children's Instagram profile data.<ref>[https://www.edpb.europa.eu/our-work-tools/our-documents/binding-decision-board-art-65/binding-decision-22022-dispute-arisen_en Binding Decision 2/2022 on the dispute arisen on the draft decision of the Irish Supervisory Authority regarding Meta Platforms Ireland Limited (Instagram) under Article 65(1)(a) GDPR] - edpb.europa.eu - 15 Sep 2022</ref> Before corrective measures were imposed upon Meta, their Instagram platform publically disclosed email address and phone numbers of children who used the business account feature.
 === The State of Texas Court v. Meta Platforms ===
@@ Line 55: / Line 55: @@
 === "Pay or Consent" Model ===
-Meta is currently being investigated for violating Europe's digital competition rules by employing a "pay or consent" model to its Facebook and Instagram platforms, forcing users to pay a monthly subscription for an ad-free version or to accept versions with personalized advertisements.<ref>[https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3582 "Commission sends preliminary findings to Meta over its “Pay or Consent” model for breach of the Digital Markets Act"] - ec.europa.eu - 1 Jul 2024 </ref>  By using the free versions, users are required to consent to the use of their personal data to serve them relevant advertisements.
+As of early 2024, Meta is being investigated for violating the EU's Digital Markets Act (DMA) by using a "pay or consent" model to its Facebook and Instagram platforms. forcing users to pay a monthly subscription for an ad-free version or to accept versions with personalized advertisements.<ref>[https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3582 "Commission sends preliminary findings to Meta over its “Pay or Consent” model for breach of the Digital Markets Act"] - ec.europa.eu - 1 Jul 2024 </ref> Launched in late 2023, Meta's model offered European users two options: pay approximately €13 monthly for ad-free access to Facebook and Instagram, or continue using free accounts with personalized advertising.
-Michael Koenig, a senior official at the European Commission, said Meta must offer users an alternative to “full” ad personalization that “does not rely on this personal data and which is then automatically less personalized and still available to them.”<ref>[https://www.cnn.com/2024/07/01/tech/meta-eu-competition-rules "Meta accused of breaking European law with its ‘pay or consent’ model"] - cnn.com - 1 Jul 2024 </ref>
+The Commission determined that this binary choice violates DMA regulations, which require "gatekeeper" platforms to offer equivalent alternatives for users who decline personal data collection. The DMA mandates that large tech companies must obtain explicit consent before combining users' personal data across services, and cannot make service access conditional upon such consent.<ref>[https://www.forbes.com/sites/roberthart/2024/07/01/metas-ad-free-subscriptions-for-instagram-and-facebook-break-europes-tech-rules-possibly-drawing-billions-in-fines-eu-says/ "Meta’s Ad-Free Subscriptions For Instagram And Facebook Break Europe’s Tech Rules—Possibly Drawing Billions In Fines, EU Says"] - forbes.com - 1 Jul 2024</ref>
 == References ==