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WhatsApp has until July to comply with EU consumer law, EU says
Global Banking & Finance Review®
Company
By Foo Yun Chee
BRUSSELS (Reuters) – Meta’s WhatsApp has until July to show that a privacy policy update introduced in January complies with EU consumer law, the European Commission said on Wednesday, in a case prompted by complaints from consumer bodies across Europe.
The European Consumer Organisation (BEUC) and the European Network of consumer authorities said WhatsApp had not explained the changes in plain and intelligible language in breach of EU consumer law.
National enforcers have the power to impose sanctions on companies found breaching consumer laws.
The Consumer Protection Cooperation Network, which is made up of national consumer watchdogs and backed by the EU executive, sent a letter to WhatsApp in January asking for clarifications on its updated privacy policy.
The regulators said a March reply from the company did not convince them, prompting them to send a second letter on Wednesday.
“WhatsApp must ensure that users understand what they are agreeing to and how their personal data is used for commercial purposes, in particular to offer services to commercial partners,” the Commission’s justice chief Didier Reynders said in a statement.
WhatsApp said it would respond to the letter in due course.
“Our 2021 update did not change our commitment to user privacy or the way we operate our service, including how we process, use or share data with anyone, including Meta,” a spokesperson said.
(Reporting by Foo Yun Chee;Editing by Elaine Hardcastle)
Consumer protection refers to laws and regulations designed to ensure the rights of consumers, promoting fair trade, competition, and accurate information in the marketplace.
A privacy policy is a statement that explains how an organization collects, uses, discloses, and manages a customer's data. It is essential for transparency and compliance with regulations.
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU.
Compliance in finance refers to the process of adhering to laws, regulations, and guidelines set by governing bodies to ensure ethical standards and protect consumers.
Sanctions in financial regulation are penalties imposed on organizations or individuals for failing to comply with laws and regulations, which can include fines or restrictions on operations.
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