If Facebook wants to restore consumer trust after the scandal, it "should not hide behind complicated, legalistic jargon on how it is making billions on people's data," European Union Consumer Commissioner Vera Jourova said in a statement.
"Now, users will clearly understand that their data is used by the social network to sell targeted ads." The changes are part of broader global efforts to rein in social media companies amid concerns about privacy breaches, harmful content and other online abuses.
Facebook said it's not changing the substance of its terms, just improving how it describes things.
The changes will take effect worldwide, in another sign of how stricter EU rules on tech companies are being felt globally.
"We've been doing a lot of work this year to better explain how Facebook works, what data we collect and how we use it. As part of these ongoing efforts, we'll be updating our Terms of Service to be more clear about how Facebook makes money," the company said in a statement.
The new terms explain that Facebook is free for users in return for sharing their data and exposing them to ads.
Other changes include outlining services Facebook sells to third parties based on user data and letting users know how they can close their accounts and under what reasons their accounts can be disabled.
Facebook is expected to make all the changes by the end of June. If it doesn't, the commission said it can use enforcement measures, including unspecified sanctions.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.