Facebook agrees to clearer T&Cs in Europe

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.

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.”

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 .

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.

A comprehensive and coordinated assessment of Facebooks practices should be carried out from a consumer, data protection and competition law perspective by all relevant enforcement authorities.