Financial expert reveals: Meta has to improve the subscription model for Instagram and Facebook - Consumer advice center NRW obtains an interim injunction before the Düsseldorf Higher Regional Court.

Financial expert reveals: Meta has to improve the subscription model for Instagram and Facebook - Consumer advice center NRW obtains an interim injunction before the Düsseldorf Higher Regional Court.

According to a report by www.presseportal.de,

Meta Platforms Ireland Limited, the company behind Instagram and Facebook, was sued by the North Rhine-Westphalia Consumer Center for several legal violations in connection with the subscription model for the social networks. The Düsseldorf Higher Regional Court (OLG) has obtained an interim injunction against Meta Platforms Ireland Limited as part of urgent proceedings. The North Rhine-Westphalia Consumer Center is now examining a remedy to ensure that consumers who have taken out the subscription receive their money back. In addition, further proceedings are ongoing due to data protection violations in the subscription model.

The order buttons for the “ad-free” subscription model on Instagram and Facebook were classified as inadmissible because they did not indicate the paid contracts clearly enough. This could result in subscriptions already taken out being ineffective and affected consumers receiving their money back. Additionally, there are legal concerns about data breaches related to the “pay-or-consent” model, where Meta does not obtain effective consent for the use of personal data for advertising purposes.

The company could therefore be legally obliged to pay back illegally collected subscription fees to consumers. This could have a financial impact on Meta and also affect consumer trust in Instagram and Facebook's subscription model. In addition, there are possible data protection penalties in the event of a negative outcome of the data protection violation proceedings.

The introduction of the modernized collective action law enables associations such as the NRW Consumer Center to act on behalf of consumers and, if the outcome is successful, to award them compensation payments or refunds directly without them having to go to court again.

These proceedings could influence the paid subscription and privacy practices of companies such as Meta Platforms Ireland Limited and increase consumer awareness of their rights. However, it remains to be seen how the courts will decide in these cases.