EU: Commission announces WhatsApp agreement on updates to terms of service
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On March 6th, 2023, the European Commission announced that the Consumer Protection Cooperation Network (CPC Network) had reached an agreement with #WhatsApp LLC regarding updates to the messaging platform's terms of service. The Commission revealed that it had requested clarification from WhatsApp on several points in January and June of 2022. These points included the purposes for which consumer personal data is used, whether users understand that WhatsApp shares this data with Meta, Inc. and its messaging service Facebook, and how consumers can reject the terms of service.
As a result of the agreement, WhatsApp will make it easier for users to reject updates to the terms of service when they disagree with them. In addition, WhatsApp will confirm that users' personal data is not shared with third parties or other Meta services for advertising purposes.
Regarding future updates to the terms of service, WhatsApp will explain what changes it intends to make to the users' contracts and how these changes could affect their rights. The messaging platform will also include the option for users to reject updated terms of service as prominently as the option to accept them. Finally, WhatsApp will ensure that notifications about updates can be dismissed or delayed, and the platform will respect users' choices and refrain from sending recurring notifications.
The CPC Network will monitor how WhatsApp implements these commitments when making updates to policies and terms of service. For further information, the announcement is available here, the press release of the Irish Competition and Consumer Protection Commission can be found here, and the Swedish Consumer Agency's ('Om Konsumentverket') press release (only available in Swedish) is available here.
EU: Consumer protection: WhatsApp agrees to comply fully with EU rules, informing users better and respecting their choices on contract updates
Following a dialogue with EU consumer protection authorities and the European Commission (CPC network), WhatsApp committed to being more transparent on changes to its terms of service. Moreover, the company will make it easier for users to reject updates when they disagree with them, and will clearly explain when such rejection leads the user to no longer be able to use WhatsApp's services. Also, WhatsApp confirmed that users' personal data are not shared with third-parties or other Meta companies - including Facebook - for advertising purposes. The dialogue was coordinated by the Swedish Consumer Agency and the Irish Competition and Consumer Protection Commission and facilitated by the Commission.
Commissioner for Justice, Didier Reynders, said: “I welcome WhatsApp's commitments to changing its practices to comply with EU rules, actively informing users of any changes to their contract, and respecting their choices instead of asking them each time they open the app. Consumers have a right to understand what they agree to and what that choice entails concretely, so that they can decide whether they want to continue using the platform.”
The CPC Network first sent a letter to WhatsApp in January 2022, following an alert by the European Consumer Organisation (BEUC) and eight of its member associations on alleged unfair practices in the context of WhatsApp's updates to their terms of service and privacy policy. In June 2022, the CPC Network sent a second letter to WhatsApp reiterating their request that consumers must be clearly informed about WhatsApp's business model and, in particular, whether WhatsApp derives revenues from commercial policies relating to users' personal data. Following discussions among the CPC Network, the Commission and WhatsApp, the company confirmed that it does not share users' personal data for advertising purposes.
Overview of commitments
For any future policy updates, WhatsApp will:
- explain what changes it intends to make to the users' contracts and how they could affect their rights;
- include the possibility to reject updated terms of service as prominently as the possibility to accept them;
- ensure that the notifications informing about the updates can be dismissed or the review of the updates can be delayed, as well as respect users' choices and refrain from sending recurring notifications.
Next steps
The Consumer Protection Cooperation Network (CPC) will actively monitor how WhatsApp implements these commitments when making any future updates to its policies and, where necessary, enforce compliance – including by the possibility of imposing fines.
Moreover, a recent Commission study and the last CPC sweep on “dark patterns” showed that many companies use “dark patterns”, for example making it more difficult to unsubscribe from a service than to subscribe to it. The CPC Network, with the support of the Commission, will continue to intensify their efforts to addres such illegal practices where they occur.
Background
The new Digital Services Act foresees i.a. an obligation for services to have clear terms and conditions, explaining to the user in comprehensible language when their content or their account can be affected by certain restrictions, and an obligation to apply such restrictions in a diligent, objective and proportionate manner. The DSA will complement rules such as the Unfair Commercial Practices Directive or the General Data Protection Regulation, ensuring that no regulatory gap is left for platforms to manipulate users.
The Consumer Protection Cooperation (CPC) is a network of authorities responsible for the enforcement of EU consumer protection laws. To tackle cross-border issues, their actions are coordinated at EU level.
National authorities are responsible for the enforcement of EU consumer protection laws. Thanks to the Consumer Protection Cooperation Regulation, they have a common toolbox of strong powers to detect irregularities and take speedy and coordinated action against non-compliant traders.
Moreover, the new Directive on better enforcement and modernisation of Union consumer protection rules, amended existing EU consumer law instruments by further enhancing transparency for consumers when they buy on online marketplaces.
Cooperation applies to consumer rules covering various areas such as unfair commercial practices, e-commerce, geo-blocking, package holidays, online selling, and passenger rights.
