NOYB Threatens Meta With Lawsuit if it Collects Personal Data of Europeans for AI Training Without Consent

Austrian digital advocacy group NOYB, led by privacy activist Max Schrems, expressed concerns about Meta Platforms' plan to use the personal data of Europeans to train its AI models. The group threatened that it would pursue an injunction against the US tech giant that could lead to billions in damage claims.

Meta has stated it plans to use EU personal data from Instagram and Facebook users, starting 27th May, to train AI systems. The company relies on an alleged 'legitimate interest to just suck up' all user data instead of asking consumers for opt-in consent.

NOYB highlighted in a Wednesday press release that if a company seeks to use personal data, it has to comply with one of six legal bases according to Article 6(1) of the General Data Protection Regulation. The opt-in consent allows users to provide a 'freely given, specific, informed and unambiguous' consent to the processing of data, say no, or even stay silent.

Meanwhile, companies can also claim a 'legitimate interest' to process personal data. For instance, a fraudster won't consent to a CCTV camera filming him, but a bank might have a 'legitimate interest' in having CCTV cameras. Leveraging this legal base, Meta is claiming it has such a 'legitimate interest' to process data for AI training instead of offering a yes-no consent option. Hence, users are only left with the right to opt-out as per Article 21 of GDPR, but Meta is limiting this right, stating that it applies if people object to data collection before the training has started.

NOYB Proposes a Simple Solution

The advocacy group proposed a simple solution to the evolving situation. It urged Meta to ask users for opt-in consent to use their data instead of an opt-out objection.

'It is however, totally absurd to argue that Meta needs the personal data of everyone that uses Facebook or Instagram in the past 20 years to train AI. Most other AI providers (like OpenAI or French Mistral) have zero access to social media data and still outcompete Meta's AI systems,' according to the press release.

Max Schrems said the matter is whether Meta should ask users for consent or collect their data without it.

'Meta starts a huge fight just to have an opt-out system instead of an opt-in system. Instead, they rely on an alleged "legitimate interest" to just take the data and run with it. This is neither legal nor necessary. Meta's absurd claims that stealing everyone's personal data is necessary for AI training is laughable,' Schrems said.

The activist highlighted that the European Court of Justice held that Meta is not allowed to claim a 'legitimate interest' in targeting users with advertising. In that case, Schrems questioned how can Meta have a 'legitimate interest' to use personal user data for training AI models?

NOYB Threatens Meta With Legal Action

As a qualified entity under the EU Collective Redress Directive, NOYB said it could pursue an injunction to prevent unlawful practices by a company like Meta. The group highlighted that these cases can be introduced in various jurisdictions beyond the Meta headquarters in Ireland.

A granted injunction would compel Meta to stop processing user data and terminate 'illegally' trained AI models. 'If EU data is mixed in with non-EU data, the entire AI model would have to be deleted,' per the press release.

Furthermore, an injunction would also mean that potential damage claims by users will continue to mount for as long as Meta continues to use European data for AI training. 'The GDPR allows for non-material damages that are usually in the hundreds or thousands per user,' NOYB said.

The group can also file for a redress action to recoup damages for large user groups. 'If the non-material damage were only €500 per user, it would amount to around €200 billion for the roughly 400 million monthly active Meta users in Europe,' the group noted.

'We are currently evaluating our options to file injunctions, but there is also the option for a subsequent class action for non-material damages,' Schrems said.

NOYB has already sent Meta a cease and desist letter, offering it until 21st May to respond.