The European Data Protection Committee (CEPD) has made a ruling on the controversial ‘Pay or accept’ procedure used by online platforms. They stated that platforms should offer a third option that provides a genuine choice for users when it comes to data consent models.
Meta, the owner of popular services like Instagram and Facebook, introduced a subscription format without ads last year, alongside the existing free use option which includes user tracking for advertising purposes. This ‘Pay or accept’ model requires users to pay for data privacy rights, a practice criticized by digital rights organizations.
Following concerns raised by various groups, the CEPD met to discuss this issue and concluded that platforms should not just offer paid alternatives for data privacy. They suggested that platforms should consider providing a free alternative that does not involve behavioral advertising or the processing of extensive personal data.
The CEPD emphasized the importance of obtaining valid consent under the General Data Protection Regulation (GDPR), highlighting principles like purpose limitation, data minimization, and fairness. They stressed that users should not feel pressured to give consent, and platforms should evaluate the potential consequences of not giving consent, such as losing connections or access to professional networks.
Furthermore, the CEPD highlighted the need to assess power imbalances between users and platforms, to ensure that users are not at a disadvantage. They warned against turning data protection rights into a paid feature, emphasizing the importance of users fully understanding the value and consequences of their choices when it comes to data consent.