The European Commission said Facebook is to make changes its terms and conditions, for the first time clearly spelling out to users its business model of making income from sales of their personal data.
The changes, set to be introduced by the end of June at the latest, explain in plain language how the company’s business model is based on the use of its users’ data to develop profiling activities and deliver targeted advertising.
The new terms detail what services Facebook sells to third parties for the use of users’ data, how consumers can close their accounts and under what circumstances accounts may be disabled by the firm.
The changes, brought about through negotiations by Facebook with the Commission and national consumer protection authorities, also involve other alterations aimed at bringing the company’s terms and conditions inline with European consumer law.
They follow a number of scandals involving users’ personal data and security details.
“Now, users will clearly understand that their data is used by the social network to sell targeted ads,” said justice commissioner Vera Jourova.