The European Data Protection Committee (CEPD) has recently ruled on the ‘Pay or Accept’ procedure used by online platforms, stating that they should provide a third option for user data consent. This decision comes after concerns from 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. 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 emphasized that platforms should not default to charging fees for data privacy alternatives but should instead consider offering free options that do not involve data processing for advertising purposes.
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. 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.
The 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 effort to coexist with the free user tracking model. This move sparked concerns from digital rights organizations who criticized the ‘Pay or Accept’ model as forcing users to pay for data privacy.