As of: February 14, 2024, 10:51 a.m
Comments
Press
Split
Meta has to revise its subscription model for Instagram and Facebook after the Düsseldorf Higher Regional Court found legal violations, but what are the reasons?
In a remarkable ruling, the Düsseldorf Higher Regional Court classified the practices of Meta Platforms Ireland Limited in connection with the subscription model on Instagram and Facebook, which was introduced at the end of 2023, as unlawful.
The design of the order buttons that lead to an “ad-free” subscription violates legal requirements because they do not clearly indicate whether the purchase is subject to a fee.
This ruling marks an important victory for consumer protection and underscores the need for global companies to also comply with local consumer protection laws.
Meta has to revise its subscription model for Instagram and Facebook after the Düsseldorf Higher Regional Court found legal violations.
(Symbolic image) © Felix Schlikis/Lobeca/Imago
Inadequate labeling leads to consumer confusion
Since November 2023, users of the social networks Instagram and Facebook have had the choice of paying for ad-free use or accepting personalized advertising.
The court criticized that the labeling of the order buttons did not communicate clearly enough that a paid contract was concluded with just one click.
This practice violates the so-called button solution, which requires clear labeling to protect consumers from unwanted cost traps.
Due to the illegal design of the order buttons, all Instagram and Facebook subscriptions taken out via them are ineffective.
The North Rhine-Westphalia Consumer Center emphasizes that affected consumers are not obliged to pay and is currently considering filing a remedy.
This could force Meta to pay back illegally collected subscription fees.
In addition, those affected could register themselves in a lawsuit register free of charge and, if successful, benefit directly.
Data protection concerns with the “pay-or-consent” model
In addition to the illegal order buttons, Meta is also criticized for potential data protection violations.
The pay-or-consent model, which forces users to choose between paying for ad-free use or consenting to advertising, could violate data protection rules by not effectively obtaining consent for the use of personal data for advertising purposes.
This issue is the subject of further proceedings by the North Rhine-Westphalia Consumer Center against Meta.
Most recently, Meta gave its users the opportunity for more data control.
The judgment comes at a time when Germany has re-regulated the law on collective actions in order to give associations such as the NRW consumer advice center more opportunities to act in the interests of consumers.
The newly introduced remedy allows consumers to claim direct damages or refunds without having to go to court again.
This strengthens consumer protection and makes it easier to enforce consumer rights.
If you book all Meta subscriptions, it costs up to 660 euros per year.