The European Data Protection Committee (CEPD) has recently issued a ruling on the ‘Pay or Accept’ procedure used by online platforms, stating that they should provide a third option for user data consent. This decision came after concerns were raised by digital rights organizations who criticized the model as forcing users to pay for data privacy.
In response to these concerns, the EDPB met this week and advised platforms to offer alternatives to the ‘Accept or Pay’ method. The President of CEPD, Anu Talus, emphasized 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.
A new open letter from various organizations urged the EDPB to address the issues of this format as a way to circumvent EU privacy protections and profit commercially. Meta, the owner of Instagram and Facebook, introduced an ad-free subscription format last year in an attempt to coexist with the free user tracking model. However, this move sparked further criticism from digital rights organizations who argued that it undermined user privacy and profited off of their personal information.
CEPD stressed 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. Overall, users should be fully informed about the value and consequences of their choices regarding data consent.