The European Data Protection Committee (CEPD) has ruled on the ‘Pay or Accept’ procedure used by online platforms, stating that they should provide a third option for user data consent. This follows 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.
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 sparked further concerns from digital rights organizations who urged the EDPB to address issues surrounding this format as a way to circumvent EU privacy protections and profit commercially.
The committee 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.
In addition, CEPD stressed that users should be fully informed about the value and consequences of their choices regarding data consent. Platforms 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. Factors such as conditionality, harm, and power imbalances must be considered when charging fees for data consent under GDPR regulations.
The open letter from various organizations urged CEPD to address issues surrounding this format as it is seen as a way of circumventing EU privacy protections and profiting commercially.
Overall, CEPD advised platforms to offer alternatives to the ‘Pay or Accept’ method while also ensuring that users are fully informed about their choices regarding data consent.
