In a recent ruling, the European Data Protection Committee (CEPD) has advised online platforms to provide users with a third option for data consent in regards to the ‘Pay or Accept’ procedure. This decision comes after concerns were raised by digital rights organizations who criticized the model for forcing users to pay for data privacy. Meta, owner of Instagram and Facebook, introduced an ad-free subscription format last year which sparked these concerns.
The CEPD emphasized that companies must evaluate whether their decisions could lead to negative consequences for users, such as losing connections or access to professional networks. They must also assess the power dynamics between themselves and users to avoid misusing the fundamental right to data protection as a paid feature. The Committee stressed that users should be fully informed about the value and consequences of their choices regarding data consent.
In response to these concerns, digital rights organizations sent an open letter to the EDPB urging them to address the issues of this format as a way to circumvent EU privacy protections and profit commercially. The EDPB met this week and advised platforms to offer alternatives to the ‘Accept or Pay’ method. President of CEPD, Anu Talus, stated that current models often require users to give up their data or pay without understanding the full implications.
The Committee highlighted the importance of obtaining valid consent under GDPR and ensuring that users are not coerced into giving consent. Factors such as conditionality, harm, and power imbalances must be considered when charging fees for data consent. The EDPB also emphasized that companies should not default to charging fees for data privacy alternatives but instead consider offering free options that do not involve data processing for advertising purposes.
Meta’s introduction of an ad-free subscription format last year raised concerns from digital rights organizations who criticized the ‘Pay or Accept’ model as forcing users to pay for data privacy. However, now the CEPD has ruled in favor of providing a third option for user data consent in order to protect user privacy while still allowing companies like Meta