European consumer protection authorities have given Facebook, Twitter and Google a one-month ultimatum to amend their terms of service or face fines, according to an unnamed source cited by Reuters. The authorities sent letters to the companies in December saying that some of their service terms broke European Union consumer protection law. The terms in question include the requirement for users to seek redress in court in California, where the companies are based, instead of their country of residence, requiring consumers to waive mandatory rights such as the right to cancel a contract, and an excessive power for the companies to determine the suitability of content generated by users.
The letters also raised other issues including not identifying sponsored content clearly and the need for the companies to do more to tackle fraud and scams on their websites. In addition, the authorities proposed setting up a standard communication channel to notify the companies of content considered illegal and the action requested, according to the letters. The authorities are being supported by the European Commission and could impose fines if they are not satisfied, said the report.
