Media & Entertainment

Social media firms given a month to fix consumer rights issues in Europe

Comment

Image Credits: Twin Design (opens in a new window) / Shutterstock (opens in a new window)

Facebook, Twitter and Google are under more pressure in Europe to comply with regional rules. The latest issue they find themselves on the hook for relates to complaints pertaining to a variety of consumer rights that have been investigated by EU regulators since last year.

EU consumer authorities have been specifically looking into complaints about unfair terms and conditions, and looking for ways to tackle fraud and scams that mislead consumers when they are using the social networks — such as fake promotions to ‘win a smartphone for €1’ that also sign the user up to a hidden long term subscription for hundreds of euros.

Last November the three social media firms were sent letters by the EU regulators asking them to address the areas of concern. That was followed, earlier this month, by a meeting between the companies, regulators and the European Commission to discuss proposed solutions.

The companies have now been given a month to come up with fixes. If their proposals fail to pass muster they could face enforcement action in future, the EC said today.

Contacted for a response Facebook, Twitter and Google all declined to comment, saying they have nothing to share at this stage.

A variety of EU rules are involved in the matter, including the Unfair Commercial Practices Directive, the E-commerce Directive, the Consumer Rights Directive or the unfair contract terms Directive.

The latter directive, for example, can invalidate standard terms & conditions if they create a significant imbalance in parties’ rights and obligations to the detriment of the consumer — meaning the terms would be judged unfair.

The Directive also requires that T&Cs be drafted in “plain and intelligible language” — to ensure consumers are informed in a clear and understandable manner about their rights.

Some of the specific things the EC emphasizes today that social media companies cannot do under EU consumer rules (suggesting the three are being accused of, at least, some of these failings) are:

  • Social media networks cannot deprive consumers of their right to go to court in their Member State of residence;
  • Social media networks cannot require consumers to waive mandatory rights, such as their right to withdraw from an online purchase;
  • Terms of services cannot limit or totally exclude the liability of social media networks in connection with the performance of the service;
  • Sponsored content cannot be hidden but should be identifiable as such;
  • Social media networks cannot unilaterally change terms and conditions without clearly informing consumers about the justification and without given them the possibility to cancel the contract, with adequate notice;
  • Terms of services cannot confer unlimited and discretionary power to social media operators on the removal of content;
  • Termination of a contract by the social media operator should be governed by clear rules and not decided unilaterally without a reason;

T&Cs are something we’ve long criticized as a horrible problem in the tech space. And while Facebook, Twitter and Google are clearly not the only companies in the industry that could be accused of muddying their terms with opaque language, swingeing vagueness and impenetrable layers of complexity, the huge and growing societal power of social media platforms — and these three giants specifically — is bringing them into contact with regulators’ spotlights, more and more.

Earlier this week, for example, Facebook and Twitter were criticized for continued failings to promptly remove hate speech from their platforms in Germany. The government there has now proposed a new law aimed at standardizing social media platforms’ content moderation processes to ensure compliance in future.

Meanwhile growing awareness of how algorithms that social media firms use to distribute content on their platforms can encourage and amplify the spread of ‘fake news’ continues to ruffle feathers — and is starting to land on political agendas.

In recent years social media giants have also come under increased pressure to do more to help government agencies in the region combat terrorism. With great power, it would seem, comes increasing societal and regulatory responsibilities for social media platforms.

Mark Zuckerberg’s recent open letter — which sought to reframe some of the societal divisions that have been demonstrably exacerbated by social networking as a need to further embed social networking structures into human societies to harness even more of people’s activity — is unlikely to be the last public pronouncement the Facebook CEO feels moved to make as social networking platforms and political discourse are wound ever tighter.

More TechCrunch

StrictlyVC events deliver exclusive insider content from the Silicon Valley & Global VC scene while creating meaningful connections over cocktails and canapés with leading investors, entrepreneurs and executives. And TechCrunch…

Meesho, a leading e-commerce startup in India, has secured $275 million in a new funding round.

Meesho, an Indian social commerce platform with 150M transacting users, raises $275M

Some Indian government websites have allowed scammers to plant advertisements capable of redirecting visitors to online betting platforms. TechCrunch discovered around four dozen “gov.in” website links associated with Indian states,…

Scammers found planting online betting ads on Indian government websites

Around 550 employees across autonomous vehicle company Motional have been laid off, according to information taken from WARN notice filings and sources at the company.  Earlier this week, TechCrunch reported…

Motional cut about 550 employees, around 40%, in recent restructuring, sources say

The deck included some redacted numbers, but there was still enough data to get a good picture.

Pitch Deck Teardown: Cloudsmith’s $15M Series A deck

The company is describing the event as “a chance to demo some ChatGPT and GPT-4 updates.”

OpenAI’s ChatGPT announcement: What we know so far

Unlike ChatGPT, Claude did not become a new App Store hit.

Anthropic’s Claude sees tepid reception on iOS compared with ChatGPT’s debut

Welcome to Startups Weekly — Haje‘s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. Look,…

Startups Weekly: Trouble in EV land and Peloton is circling the drain

Scarcely five months after its founding, hard tech startup Layup Parts has landed a $9 million round of financing led by Founders Fund to transform composites manufacturing. Lux Capital and Haystack…

Founders Fund leads financing of composites startup Layup Parts

AI startup Anthropic is changing its policies to allow minors to use its generative AI systems — in certain circumstances, at least.  Announced in a post on the company’s official…

Anthropic now lets kids use its AI tech — within limits

Zeekr’s market hype is noteworthy and may indicate that investors see value in the high-quality, low-price offerings of Chinese automakers.

The buzziest EV IPO of the year is a Chinese automaker

Venture capital has been hit hard by souring macroeconomic conditions over the past few years and it’s not yet clear how the market downturn affected VC fund performance. But recent…

VC fund performance is down sharply — but it may have already hit its lowest point

The person who claims to have 49 million Dell customer records told TechCrunch that he brute-forced an online company portal and scraped customer data, including physical addresses, directly from Dell’s…

Threat actor says he scraped 49M Dell customer addresses before the company found out

The social network has announced an updated version of its app that lets you offer feedback about its algorithmic feed so you can better customize it.

Bluesky now lets you personalize main Discover feed using new controls

Microsoft will launch its own mobile game store in July, the company announced at the Bloomberg Technology Summit on Thursday. Xbox president Sarah Bond shared that the company plans to…

Microsoft is launching its mobile game store in July

Smart ring maker Oura is launching two new features focused on heart health, the company announced on Friday. The first claims to help users get an idea of their cardiovascular…

Oura launches two new heart health features

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 considers allowing AI porn

Garena is quietly developing new India-themed games even though Free Fire, its biggest title, has still not made a comeback to the country.

Garena is quietly making India-themed games even as Free Fire’s relaunch remains doubtful

The U.S.’ NHTSA has opened a fourth investigation into the Fisker Ocean SUV, spurred by multiple claims of “inadvertent Automatic Emergency Braking.”

Fisker Ocean faces fourth federal safety probe

CoreWeave has formally opened an office in London that will serve as its European headquarters and home to two new data centers.

CoreWeave, a $19B AI compute provider, opens European HQ in London with plans for 2 UK data centers

The Series C funding, which brings its total raise to around $95 million, will go toward mass production of the startup’s inaugural products

AI chip startup DEEPX secures $80M Series C at a $529M valuation 

A dust-up between Evolve Bank & Trust, Mercury and Synapse has led TabaPay to abandon its acquisition plans of troubled banking-as-a-service startup Synapse.

Infighting among fintech players has caused TabaPay to ‘pull out’ from buying bankrupt Synapse

The problem is not the media, but the message.

Apple’s ‘Crush’ ad is disgusting

The Twitter for Android client was “a demo app that Google had created and gave to us,” says Particle co-founder and ex-Twitter employee Sara Beykpour.

Google built some of the first social apps for Android, including Twitter and others

WhatsApp is updating its mobile apps for a fresh and more streamlined look, while also introducing a new “darker dark mode,” the company announced on Thursday. The messaging app says…

WhatsApp’s latest update streamlines navigation and adds a ‘darker dark mode’

Plinky lets you solve the problem of saving and organizing links from anywhere with a focus on simplicity and customization.

Plinky is an app for you to collect and organize links easily

The keynote kicks off at 10 a.m. PT on Tuesday and will offer glimpses into the latest versions of Android, Wear OS and Android TV.

Google I/O 2024: How to watch

For cancer patients, medicines administered in clinical trials can help save or extend lives. But despite thousands of trials in the United States each year, only 3% to 5% of…

Triomics raises $15M Series A to automate cancer clinical trials matching

Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation. Sign up here for free — just click TechCrunch Mobility! Tap, tap.…

Tesla drives Luminar lidar sales and Motional pauses robotaxi plans

The newly announced “Public Content Policy” will now join Reddit’s existing privacy policy and content policy to guide how Reddit’s data is being accessed and used by commercial entities and…

Reddit locks down its public data in new content policy, says use now requires a contract