Privacy advocacy group NOYB challenges Meta’s use of European data for AI training

Privacy advocacy group NOYB, led by Max Schrems, is challenging Meta‘s plans to use European users’ personal data for AI model training, threatening potential billion-euro damages claims through collective action. This confrontation highlights the ongoing tension between tech giants’ data harvesting ambitions and Europe’s robust privacy regulations, with significant financial implications for Meta if regulators determine the company’s “legitimate interest” justification doesn’t satisfy EU privacy standards.

The big picture: NOYB has sent Meta a cease and desist letter, seeking to block the company from using European Facebook and Instagram users’ personal data for AI training beginning May 27.

• The advocacy group threatened to pursue an injunction under EU Collective Redress rules, potentially followed by class action lawsuits for non-material damages.
• If successful, damages could reach astronomical figures, with NOYB noting that “more than 400 million European Meta users” could each claim around €500 in compensation.

Meta’s approach: The company plans to use Europeans’ personal data from Instagram and Facebook under a “legitimate interest” justification within EU privacy frameworks.

• Meta stated users would receive a link to an opt-out form where they can object to their data being used for AI training.
• The company indicated it won’t use private messages or data from accounts of users under 18 for AI training purposes.

Why it matters: The European Court of Justice has previously ruled against Meta’s use of “legitimate interest” as justification for targeted advertising, creating a significant precedent.

• Schrems directly questioned Meta’s legal basis: “How should it have a ‘legitimate interest’ to suck up all data for AI training?” when the court already rejected similar reasoning for advertising.
• NOYB has given Meta until May 21 to respond to its demands before potentially pursuing legal action.

Alternative approaches: NOYB suggests Meta could align with EU privacy rules by changing its consent model and data usage practices.

• The advocacy group recommends implementing an opt-in rather than opt-out approach to gain user consent.
• NOYB also suggests Meta could use anonymized user data for AI training to better comply with EU privacy regulations.