Press Releases

WASHINGTON, DC – Today, Congresswoman Lori Trahan (MA-03), a member of the House Energy and Commerce Committee’s Consumer Protection and Commerce Subcommittee, led a group of fellow Congressional Hispanic Caucus members in writing a letter calling on Facebook Chairman and CEO Mark Zuckerberg to reverse the company’s decision to require WhatsApp users to accept expanded data collection or leave the platform entirely.

“We write to respectfully ask Facebook to consider reversing WhatsApp’s decision to update their new terms of service. We believe Facebook is potentially offering a false choice to users across the globe: accept the sharing of metadata with Facebook by May 15th or leave the platform altogether,” the lawmakers wrote.

In their letter, the members highlight the pledge made by Zuckerberg during its $19 billion acquisition of the messaging app in 2014 that, “[w]e are absolutely not going to change plans around WhatsApp and the way it uses user data. WhatsApp is going to operate completely autonomously” – a promise later cited as a condition of the deal’s approval by the Federal Trade Commission. They go on to highlight how a 2016 update broke that promise and how this newest update is yet another violation.

“In 2016, we believe WhatsApp broke its promise. Presenting a routine ‘update’ on WhatsApp’s terms and conditions, Facebook was given access to a range of user data with only 30 days’ notice to opt out. This policy update allowed Facebook to collect metadata from WhatsApp users, stating it may use the information to make ‘product suggestions’ and show ‘relevant offers and ads,’ an action we view as potentially harmful to an individual’s data rights,” the lawmakers continued. “With this latest update, WhatsApp is introducing new features for messaging between businesses and their customers on WhatsApp. WhatsApp has stated that though personal chats will remain private, the same cannot be said of chats conducted between businesses and individuals. Users would “opt in” to a chat-like interaction with businesses. A driver behind these interactions would be the data that Facebook has collected on users through Facebook, Instagram and WhatsApp.”

As members of the Congressional Hispanic Caucus, the lawmakers represent substantial Spanish-speaking and immigrant communities, which also make up the strongest American-based user base on WhatsApp at approximately 32 million people. They raised concerns specifically about the impact of this update and the lack of viable competitors should a user want to switch platforms to avoid having their data collected.

“We believe it may be challenging for U.S.-based Hispanics to switch to other social networks because WhatsApp is the primary way for them to connect with relatives and friends in Latin America where the market has tipped—WhatsApp usage is over 85 percent in Argentina, Colombia, Brazil, and Mexico.  Latin Americans pay some of the highest mobile prices in the world making traditional text messaging unaffordable compared to WhatsApp which is mostly zero-rated,” the lawmakers wrote. “As Members of the Congressional Hispanic Caucus, we are concerned that WhatsApp’s policy change may leave our immigrant communities vulnerable to further ad targeting. We believe consumers deserve the option to use WhatsApp knowing that their privacy will be protected the way the founders intended, and the way Facebook promised to uphold.”

The full text of the letter is embedded below. A digital copy can be accessed by clicking HERE.

----------------------------------

Dear Mr. Zuckerberg:  

We write to respectfully ask Facebook to consider reversing WhatsApp’s decision to update their new terms of service. We believe Facebook is potentially offering a false choice to users across the globe: accept the sharing of metadata with Facebook by May 15th or leave the platform altogether.  We join public interest groups and parliamentarians around the world in requesting that Facebook reverse this policy change.  We recognize the efforts of the Federal Trade Commission (FTC) and State Attorney Generals in their ongoing suit to enforce existing antitrust laws as they relate to Facebook’s monopolistic conduct. However, this request is related to what we believe is a potential misuse of data that unless reversed goes into effect next week. 

Facebook acquired WhatsApp in 2014 for $19 Billion.  At the time of the acquisition, you said that “[w]e are absolutely not going to change plans around WhatsApp and the way it uses user data. WhatsApp is going to operate completely autonomously.”  The FTC cleared the acquisition on the condition that WhatsApp “must continue to honor” its promises to limit the “nature of the data it collects, maintains, and shares with third parties.“  A WhatsApp blog post following the announcement repeated this promise: “Here's what will change for you, our users: nothing.... And you can still count on absolutely no ads interrupting your communication.”  

In 2016, we believe WhatsApp broke its promise. Presenting a routine “update” on WhatsApp’s terms and conditions, Facebook was given access to a range of user data with only 30 days’ notice to opt out.  This policy update allowed Facebook to collect metadata from WhatsApp users, stating it may use the information to make “product suggestions” and show “relevant offers and ads,” an action we view as potentially harmful to an individual’s data rights.  

With this latest update, WhatsApp is introducing new features for messaging between businesses and their customers on WhatsApp. WhatsApp has stated that though personal chats will remain private, the same cannot be said of chats conducted between businesses and individuals. Users would “opt in” to a chat-like interaction with businesses. A driver behind these interactions would be the data that Facebook has collected on users through Facebook, Instagram and WhatsApp. In other words, it sounds like a business that interacts with an individual user “may use that information for its own marketing purposes, which may include advertising on Facebook.”  Our understanding is that this policy may not provide an option to opt out. As Facebook explains, users “won't have full functionality of WhatsApp until [they] accept.”  

Today, WhatsApp is the most widely used messenger app in the world. It is the primary mode of communication for two billion people across the globe. The Digital Markets Investigation led by our colleagues on the House Judiciary Committee (HJC), acknowledges that Facebook’s own internal documents describe the network effects of Facebook, WhatsApp, and Messenger as “very strong.”  As the HJC report explains, “WhatsApp and other regional messaging apps have bimodal distribution of reach in countries—an all-or-nothing reach” and “messaging tends toward consolidation and market tipping. Most countries have a single messaging app or protocol because they cannot support multiple messaging apps.” 

Most WhatsApp users in the United States are from immigrant communities with ties abroad. Nationally, Hispanic users make up the strongest base at around 32 million people, meaning nearly half of all Hispanic Americans use WhatsApp, compared to around 16 percent of white Americans.   We believe it may be challenging for U.S.-based Hispanics to switch to other social networks because WhatsApp is the primary way for them to connect with relatives and friends in Latin America where the market has tipped—WhatsApp usage is over 85 percent in Argentina, Colombia, Brazil, and Mexico.  Latin American’s pay some of the highest mobile prices in the world making traditional text messaging unaffordable compared to WhatsApp which is mostly zero-rated.  

As Members of the Congressional Hispanic Caucus, we are concerned that WhatsApp’s policy change may leave our immigrant communities vulnerable to further ad targeting. We believe consumers deserve the option to use WhatsApp knowing that their privacy will be protected the way the founders intended, and the way Facebook promised to uphold. Please give our request your full and fair consideration, consistent with applicable statutes and regulations. 

Sincerely,

###