Retailers Urge EC to Press Visa and MasterCard on High Fees
The largest retailers and online retail giants in Europe urged the European Commission to take action on high fees charged by Visa and Mastercard.
European consumer protection association NOYB has sent a formal settlement proposal in the form of a so-called Cease and Desist letter to Meta. The group claims that other consumer entities have also taken action.
Meta has announced it will use EU personal data from Instagram and Facebook users to train its new AI systems from 27 May onwards. Instead of asking consumers for opt-in consent, Meta relies on an alleged legitimate interest to suck up all user data. The new EU Collective Redress Directive allows Qualified Entities, such as NOYB, to issue EU-wide injunctions.
If injunctions by consumer groups are filed and won, Meta may be liable for damages to consumers, which could be brought in a separate EU class action, and damages could reach billions. NOYB claims that Meta may face massive legal risks because it relies on an "opt-out" instead of an "opt-in" system for AI training.
The group claims that Meta AI is not compliant with the GDPR. It cites Article 6 of the law that users can choose to provide a "freely given, specific, informed and unambiguous" "Yes" to the processing of their data. They can also decline or even stay silent. However, companies can also claim a so-called ‘legitimate interest’ to process personal data.
NOYB says that, instead of allowing users to choose between saying "Yes" or "No", Meta is claiming that it has a ‘legitimate interest’ to just take their data for AI training. This leaves users with only the right to object (opt-out) under Article 21 GDPR. But Meta is even limiting this statutory right by saying that it only applies if people opt out before the training has started.
"The European Court of Justice has already held that Meta cannot claim a 'legitimate interest' in targeting users with advertising. How should it have a 'legitimate interest' to suck up all data for AI training? While the 'legitimate interest' assessment is always a multi-factor test, all factors seem to point in the wrong direction for Meta. Meta simply says that its interest in making money is more important than the rights of its users," said Max Schrems, honorary chairman of NOYB.
Meta users from the EU who want to opt out of using their data need to visit the Meta privacy center. At https://www.facebook.com/privacy/genai, interested users need to click the link 'object', leave their email address, and write down why they don't want Meta to use their data in AI training.