By Natascha Divac 

FRANKFURT--Germany's main consumer protection organization said Thursday it sent a warning to Facebook demanding that the social media giant change its terms of service or face a lawsuit over data protection and other issues.

The VzBv, an umbrella organization for 41 German consumer associations, said that 19 clauses in Facebook's updated terms and policies violate German law.

The social media network has faced regular criticism and legal complaints from privacy campaigners in Europe. After a recent update of its policies, Facebook has come under increased scrutiny. A report commissioned for Belgium's data protection agency this week said the revised policies and terms violate European privacy law.

The VzBz, the Federation of German Consumer Organizations, said it issued a cease-and-desist letter to Facebook, which has until March 16 to respond. The organization particularly criticized Facebook's terms regarding the use of private data for the purpose of advertising.

"For the consumer it's not clear at first glance when [and] which data is being used for which purpose," the organization said.

The organization also said Facebook misleads consumers by calling itself a free service. While users may not pay to use Facebook, the company earns income by selling users' data to advertisers. The VzBz also criticized the obligation for users to use their real names on Facebook.

VzBz called "especially problematic" Facebook's default settings, which presume users agree with its policies. To prevent having Facebook use certain private data, users must deactivate a default setup. According to VzVb, Facebook herby presupposes its users' assent rather than giving them the opportunity to agree to terms in a conscious and deliberate manner.

Facebook said it is reviewing VzBz's comments.

"On preliminary review, we're surprised that the VzBv is focused on settled terms and features that have been part of Facebook and other online services for the past 10 years, such as real name policies," the company said in a statement. Facebook said it is "confident the updates comply with applicable laws."

VzBv's move received support from German Justice Minister Heiko Maas, who said that the organization is "picking up a legitimate point of criticism," and that Facebook's data protection terms were too vague.

Write to Natascha Divac at natascha.divac@wsj.com

Access Investor Kit for Facebook, Inc.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US30303M1027

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Meta Platforms (NASDAQ:META)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Meta Platforms Charts.
Meta Platforms (NASDAQ:META)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Meta Platforms Charts.