Privacy

Facebook agrees to clearer T&Cs in Europe

Comment

Image Credits: Jaap Arriens/NurPhoto

Facebook has agreed to amend its terms and conditions under pressure from EU lawmakers.

The new terms will make it plain that free access to its service is contingent on users’ data being used to profile them to target with ads, the European Commission said today.

“The new terms detail what services, Facebook sells to third parties that are based on the use of their user’s data, how consumers can close their accounts and under what reasons accounts can be disabled,” it writes.

Although the exact wording of the new terms has not yet been published, and the company has until the end of June 2019 to comply — so it remains to be seen how clear is ‘clear’.

Nonetheless the Commission is couching the concession as a win for consumers, trumpeting the forthcoming changes to Facebook’s T&C in a press release in which Vera Jourová, commissioner for justice, consumers and gender equality, writes:

Today Facebook finally shows commitment to more transparency and straight forward language in its terms of use. A company that wants to restore consumers trust after the Facebook/ Cambridge Analytica scandal should not hide behind complicated, legalistic jargon on how it is making billions on people’s data. Now, users will clearly understand that their data is used by the social network to sell targeted ads. By joining forces, the consumer authorities and the European Commission, stand up for the rights of EU consumers.

The change to Facebook’s T&Cs follows pressure applied to it in the wake of the Cambridge Analytica data misuse scandal, according to the Commission.

Along with national consumer protection authorities it says it asked Facebook to clearly inform consumers how the service gets financed and what revenues are derived from the use of consumer data as part of its response to the data-for-political-ads scandal.

“Facebook will introduce new text in its Terms and Services explaining that it does not charge users for its services in return for users’ agreement to share their data and to be exposed to commercial advertisements,” it writes. “Facebook’s terms will now clearly explain that their business model relies on selling targeted advertising services to traders by using the data from the profiles of its users.”

We reached out to Facebook with questions — including asking to see the wording of the new terms — but at the time of writing the company had declined to provide any response.

It’s also not clear whether the amended T&Cs will apply universally or only for Facebook users in Europe.

Update: A Facebook spokesperson has now confirmed the new T&Cs will be applied global. “We’ve been doing a lot of work this year to better explain how Facebook works, what data we collect and how we use it. As part of these ongoing efforts, we’ll be updating our Terms of Service to be more clear about how Facebook makes money. Several of the updates are the result of our work with the European Consumer Protection Network (CPC), but we’ll be making the changes globally. We appreciate the CPC’s collaboration, and we’ll share more details on the updates when we roll them out in the coming months,” said Thomas Myrup Kristensen, managing director of EU Affairs, in a statement.

European commissioners have been squeezing social media platforms including Facebook over consumer rights issues since 2017 — when Facebook, Twitter and Google were warned the Commission was losing patience with their failure to comply with various consumer protection standards.

Aside from unclear language in their T&Cs, specific issues of concern for the Commission include terms that deprive consumers of their right to take a company to court in their own country or require consumers to waive mandatory rights (such as their right to withdraw from an online purchase).

Facebook has now agreed to several other T&Cs changes under pressure from the Commission, i.e. in addition to making it plainer that ‘if it’s free, you’re the product’.

Namely, the Commission says Facebook has agreed to: 1) amend its policy on limitation of liability — saying Facebook’s new T&Cs “acknowledges its responsibility in case of negligence, for instance in case data has been mishandled by third parties”; 2) amend its power to unilaterally change terms and conditions by “limiting it to cases where the changes are reasonable also taking into account the interest of the consumer”; 3) amend the rules concerning the temporary retention of content which has been deleted by consumers  — with content only able to be retained in “specific cases” (such as to comply with an enforcement request by an authority), and only for a maximum of 90 days when retained for “technical reasons”; and 4) amend the language clarifying the right to appeal of users when their content has been removed.

The Commission says it expects Facebook to make all the changes by the end of June at the latest — warning that the implementation will be closely monitored.

“If Facebook does not fulfil its commitments, national consumer authorities could decide to resort to enforcement measures, including sanctions,” it adds.

The terms tweaks do not amount to any kind of change in how Facebook does business, as one European consumer organization we contacted for a response to the announcement pointed out.

“Clearer terms and conditions are welcomed but do not solve the problems inherent to Facebook’s business model, which is built on the extensive exploitation and monetisation of people’s privacy, its market dominance in Europe and concerns about the company’s compliance with the GDPR,” Ursula Pachl, deputy-director general for European consumer organization, BEUC, told us.

“A comprehensive and coordinated assessment of Facebook’s practices should be carried out from a consumer, data protection and competition law perspective by all relevant enforcement authorities. More transparency is not enough, fundamental changes in Facebook’s practices are needed.

“In a data economy, consumer and data protection law have to be looked at and enforced hand in hand. We are disappointed that the CPC network in this investigation limited its ambitions to increasing the transparency of social media platforms’ contract conditions and that consumer organisations were not consulted in this process. We are now waiting to see the amended terms and conditions of Facebook.”

This report was updated with comment from Facebook and BEUC

More TechCrunch

A Singapore High Court has effectively approved Pine Labs’ request to shift its operations to India.

Pine Labs gets Singapore court approval to shift base to India

Ahead of the AI safety summit kicking off in Seoul, South Korea later this week, its co-host the United Kingdom is expanding its own efforts in the field. The AI…

UK opens office in San Francisco to tackle AI risk

Companies are always looking for an edge, and searching for ways to encourage their employees to innovate. One way to do that is by running an internal hackathon around a…

Why companies are turning to internal hackathons

Featured Article

I’m rooting for Melinda French Gates to fix tech’s broken ‘brilliant jerk’ culture

Women in tech still face a shocking level of mistreatment at work. Melinda French Gates is one of the few working to change that.

15 hours ago
I’m rooting for Melinda French Gates to fix tech’s  broken ‘brilliant jerk’ culture

Blue Origin has successfully completed its NS-25 mission, resuming crewed flights for the first time in nearly two years. The mission brought six tourist crew members to the edge of…

Blue Origin successfully launches its first crewed mission since 2022

Creative Artists Agency (CAA), one of the top entertainment and sports talent agencies, is hoping to be at the forefront of AI protection services for celebrities in Hollywood. With many…

Hollywood agency CAA aims to help stars manage their own AI likenesses

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

A new crop of early-stage startups — along with some recent VC investments — illustrates a niche emerging in the autonomous vehicle technology sector. Unlike the companies bringing robotaxis to…

VCs and the military are fueling self-driving startups that don’t need roads

When the founders of Sagetap, Sahil Khanna and Kevin Hughes, started working at early-stage enterprise software startups, they were surprised to find that the companies they worked at were trying…

Deal Dive: Sagetap looks to bring enterprise software sales into the 21st century

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI moves away from safety

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

3 days ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024

Decks are all about telling a compelling story and Goodcarbon does a good job on that front. But there’s important information missing too.

Pitch Deck Teardown: Goodcarbon’s $5.5M seed deck

Slack is making it difficult for its customers if they want the company to stop using its data for model training.

Slack under attack over sneaky AI training policy

A Texas-based company that provides health insurance and benefit plans disclosed a data breach affecting almost 2.5 million people, some of whom had their Social Security number stolen. WebTPA said…

Healthcare company WebTPA discloses breach affecting 2.5 million people

Featured Article

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Microsoft won’t be facing antitrust scrutiny in the U.K. over its recent investment into French AI startup Mistral AI.

3 days ago
Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Ember has partnered with HSBC in the U.K. so that the bank’s business customers can access Ember’s services from their online accounts.

Embedded finance is still trendy as accounting automation startup Ember partners with HSBC UK

Kudos uses AI to figure out consumer spending habits so it can then provide more personalized financial advice, like maximizing rewards and utilizing credit effectively.

Kudos lands $10M for an AI smart wallet that picks the best credit card for purchases

The EU’s warning comes after Microsoft failed to respond to a legally binding request for information that focused on its generative AI tools.

EU warns Microsoft it could be fined billions over missing GenAI risk info

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking…

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

U.K.-based Seraphim Space is spinning up its 13th accelerator program, with nine participating companies working on a range of tech from propulsion to in-space manufacturing and space situational awareness. The…

Seraphim’s latest space accelerator welcomes nine companies

OpenAI has reached a deal with Reddit to use the social news site’s data for training AI models. In a blog post on OpenAI’s press relations site, the company said…

OpenAI inks deal to train AI on Reddit data