The European Data Protection Committee (CEPD) has ruled on the controversial ‘Pay or accept’ procedure used by online platforms. They have stated that platforms should offer a third option that provides users with a genuine choice when it comes to data consent models.
Last year, Meta, the owner of popular services like Instagram and Facebook, introduced a subscription format without ads 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.
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.
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 also highlighted the need to assess power imbalances between users and platforms, to ensure that users are not at a disadvantage.
In conclusion, online platforms must provide users with genuine choices when it comes to data consent models. Platforms must also obtain valid consent from their users while evaluating potential consequences of not giving consent. Additionally, power imbalances between users and platforms must be assessed to ensure that users are not at a disadvantage in terms of their data protection rights.
