Facebook has clarified its user terms and conditions following demands from the European Commission (EC) for the social network to be more transparent about how it uses personal data and earns money through targeted advertising.

The EC announced on Tuesday that Facebook has agreed to add clearer terms which set out the process that Facebook users can take to delete their accounts.

The changes also mean that Facebook will explain to users how it saves data which Facebook users have deleted from the social network.

Vera Jourová, the European Commissioner for Justice, Consumers and Gender Equality, called Facebook's terms of service "misleading" last year.

Facebook has to comply with the EU’s suggested changes by June or it faces possible sanctions.

The changes were made following pressure on the social network by the European Commission and consumer protection organisation from across the EU.

Ms Jourová said: "Today Facebook finally shows commitment to more transparency and straight forward language in its terms of use. A company that wants to restore consumers trust after the Facebook/ Cambridge Analytica scandal should not hide behind complicated, legalistic jargon on how it is making billions on people's data.”

“Now, users will clearly understand that their data is used by the social network to sell targeted ads. By joining forces, the consumer authorities and the European Commission, stand up for the rights of EU consumers.”