WhatsApp Policy Change Faces European Consumer Law Complaint

Facebook Faces EU Scrutiny Over WhatsApp Terms of Use

Facebook is currently facing allegations of violating European Union consumer protection regulations. These accusations stem from the company’s efforts to compel WhatsApp users to adopt revised terms of use for the messaging platform.

Consumer Complaint Filed with European Authorities

The BEUC, representing a coalition of consumer protection associations, alongside eight of its member organizations, has submitted a formal complaint to both the European Commission and the European network of consumer authorities.

The complaint centers on the persistent and intrusive notifications sent to users, urging them to accept WhatsApp’s updated policies. These notifications were perceived as exerting undue pressure and restricting users’ freedom of choice, constituting a breach of the EU Directive on Unfair Commercial Practices.

Initial Deadline and Subsequent Adjustments

Initially, WhatsApp indicated that notifications regarding the new policy would be relentless, potentially disrupting service usage. However, the company later retreated from its strict May 15th deadline.

Despite this adjustment, WhatsApp continues to prompt users to accept the update, offering no option to decline or halt the recurring prompts. Users can only temporarily dismiss the policy notification.

Lack of Transparency in Policy Changes

Furthermore, the complaint highlights the lack of clarity surrounding the new terms. WhatsApp is accused of failing to articulate the changes in a straightforward and easily understandable manner.

Consumers are reportedly unable to fully grasp the implications of these changes, particularly concerning the transfer of personal data to Facebook and other third parties. This lack of transparency is considered a violation of EU consumer law, which mandates clear and transparent contract terms and communications.

Ongoing Regulatory Scrutiny

The BEUC emphasized that WhatsApp’s policy updates are already under investigation by European privacy regulators. This ongoing scrutiny further underscores the inappropriateness of Facebook’s aggressive push for policy acceptance.

Call for Coordinated Investigation

The BEUC has urged the European network of consumer authorities and data protection authorities to collaborate closely on these issues. It also requests an acceleration of the ongoing investigations by EU data protection authorities (DPAs).

Report Details Concerns

A detailed report published by the BEUC elaborates on its concerns regarding the WhatsApp Terms of Service (ToS) change, criticizing the “opacity” of the new policies.

A WhatsApp spokesperson responded to the consumer complaint with the following statement:

European Commission Response

The European Commission was also contacted for comment regarding the BEUC’s complaint. An official from the Commission stated:

Previous Regulatory Actions

This consumer-law focused complaint is separate from the privacy concerns being investigated by EU DPAs. However, it follows previous regulatory actions, including a privacy warning issued by Italy in January and an urgency procedure initiated in Germany in May.

In May, Hamburg’s DPA prohibited WhatsApp from processing additional user data.

Ireland’s Data Protection Commission’s Stance

Earlier in the year, Ireland’s Data Protection Commission, Facebook’s lead data regulator in the EU, indicated acceptance of Facebook’s assurances that the ToS changes would not impact users in the region.

German DPAs Challenge the Approach

However, German DPAs expressed disagreement. Hamburg invoked emergency powers under the General Data Protection Regulation (GDPR) to bypass the standard process of routing cross-border complaints through a lead regulator.

EDPB Review of Hamburg’s Intervention

These emergency procedures are limited to three months. The European Data Protection Board (EDPB) has announced that its plenary meeting will address Hamburg DPA’s request for a binding decision. This could potentially solidify the Hamburg DPA’s intervention.

Growing Calls for Regulatory Cooperation

There is increasing momentum for greater collaboration among European regulators to address the challenges posed by large platforms. Regional competition and privacy regulators are actively enhancing their joint efforts.

The aim is to prevent fragmentation of expertise and ensure consistent enforcement of regulations, ultimately protecting Internet users.

A more unified approach to regulating platform power is gaining recognition on both sides of the Atlantic, with a focus on preventing powerful platforms from avoiding accountability.