Consent-or-pay: Difference between revisions
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Following an investigation by the European Commission, [[Meta]] was fined on 23 April 2025 for non-compliance with the [[Digital Markets Act]] (DMA). The investigation concluded that Meta's consent-or-pay model did not meet the DMA's requirements for reducing personalized data for targeted ads and did not allow for freely given consent.<ref>{{Cite web |date=30 Jun 2024 |title=Commission sends preliminary findings to Meta over its "Pay or Consent" model for breach of the Digital Markets Act |url=https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3582 |website=European Commission}}</ref> Meta was fined €228 million in April, and by July, the European Commission indicated that the company could face additional daily fines if it continued to employ this model.<ref>{{Cite web |author=Foo Yun Chee |title=Meta may face daily fines over pay-or-consent model, EU warns |url=https://www.reuters.com/sustainability/boards-policy-regulation/meta-will-only-make-limited-changes-pay-or-consent-model-eu-says-2025-06-27/ |date=27 Jun 2025 |access-date=1 Sep 2025 |website=Reuters |url-status=live |archive-url=https://archive.is/WlLFg |archive-date=1 Sep 2025}}</ref> | Following an investigation by the European Commission, [[Meta]] was fined on 23 April 2025 for non-compliance with the [[Digital Markets Act]] (DMA). The investigation concluded that Meta's consent-or-pay model did not meet the DMA's requirements for reducing personalized data for targeted ads and did not allow for freely given consent.<ref>{{Cite web |date=30 Jun 2024 |title=Commission sends preliminary findings to Meta over its "Pay or Consent" model for breach of the Digital Markets Act |url=https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3582 |website=European Commission}}</ref> Meta was fined €228 million in April, and by July, the European Commission indicated that the company could face additional daily fines if it continued to employ this model.<ref>{{Cite web |author=Foo Yun Chee |title=Meta may face daily fines over pay-or-consent model, EU warns |url=https://www.reuters.com/sustainability/boards-policy-regulation/meta-will-only-make-limited-changes-pay-or-consent-model-eu-says-2025-06-27/ |date=27 Jun 2025 |access-date=1 Sep 2025 |website=Reuters |url-status=live |archive-url=https://archive.is/WlLFg |archive-date=1 Sep 2025}}</ref> | ||
== | ==Uses== | ||
===News organizations=== | ===News organizations=== | ||
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===Consumer advocacy groups=== | ===Consumer advocacy groups=== | ||
The data protection advocacy organization ''noyb'', based in Austria, focuses on GDPR compliance and violations.<ref>{{Cite web |title=About Us |url=https://noyb.eu/en/about-us |website=noyb}}</ref> In November 2023, the group filed a complaint with the Austrian Data Protection Authority against Meta, arguing that the company lacked "any valid legal basis for [pay-or-okay]. [...] Meta is now trying to extort supposed consent from its users with a 'yes or pay' choice".<ref>{{Cite web |date=28 Nov 2023 |title=COMPLAINT UNDER ARTICLE 77(1) GDPR |url=https://noyb.eu/sites/default/files/2023-11/Complaint%20-%20Meta%20Pay%20or%20Okay%20-%20REDACTED.pdf |website=noyb - European Centre for Digital Rights}}</ref> The complaint cited the cost of rejecting personalized ads, which was €12.99 per month for [[Facebook]] and €8 per month for [[Instagram]], amounting to a combined annual total of €251.88.<ref>{{Cite web |date=28 Nov 2023 |title=noyb files GDPR complaint against Meta over "Pay or Okay" |url=https://noyb.eu/en/noyb-files-gdpr-complaint-against-meta-over-pay-or-okay |website=noyb}}</ref> ''noyb'' expressed concern that Meta's approach could set a precedent for other platforms, potentially increasing the cost of data protection for users. | The data protection advocacy organization ''[[NOYB|noyb]]'', based in Austria, focuses on GDPR compliance and violations.<ref>{{Cite web |title=About Us |url=https://noyb.eu/en/about-us |website=noyb}}</ref> In November 2023, the group filed a complaint with the Austrian Data Protection Authority against Meta, arguing that the company lacked "any valid legal basis for [pay-or-okay]. [...] Meta is now trying to extort supposed consent from its users with a 'yes or pay' choice".<ref>{{Cite web |date=28 Nov 2023 |title=COMPLAINT UNDER ARTICLE 77(1) GDPR |url=https://noyb.eu/sites/default/files/2023-11/Complaint%20-%20Meta%20Pay%20or%20Okay%20-%20REDACTED.pdf |website=noyb - European Centre for Digital Rights}}</ref> The complaint cited the cost of rejecting personalized ads, which was €12.99 per month for [[Facebook]] and €8 per month for [[Instagram]], amounting to a combined annual total of €251.88.<ref>{{Cite web |date=28 Nov 2023 |title=noyb files GDPR complaint against Meta over "Pay or Okay" |url=https://noyb.eu/en/noyb-files-gdpr-complaint-against-meta-over-pay-or-okay |website=noyb}}</ref> ''noyb'' expressed concern that Meta's approach could set a precedent for other platforms, potentially increasing the cost of data protection for users. | ||
==Effectiveness== | ==Effectiveness== | ||
The impact of the consent-or-pay model varies. | The impact of the consent-or-pay model varies.<!-- This area is more or less a link dump and still needs to be reworked more thoroughly. --> | ||
*Advertising Week reported in September 2023 that 30% of users accepted cookies post-GDPR.<ref>{{Cite web |last=Mititelu |first=Andra |title=As the Open Marketplace Fails, Advertisers Are Turning to Publishers to Reach Audiences |url=https://advertisingweek.com/as-the-open-marketplace-fails-advertisers-are-turning-to-publishers-to-reach-audiences/ |website=Advertising Week |date=2023 | *Advertising Week reported in September 2023 that 30% of users accepted cookies post-GDPR.<ref>{{Cite web |last=Mititelu |first=Andra |title=As the Open Marketplace Fails, Advertisers Are Turning to Publishers to Reach Audiences |url=https://advertisingweek.com/as-the-open-marketplace-fails-advertisers-are-turning-to-publishers-to-reach-audiences/ |website=Advertising Week |date=2023 | ||
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==Alternative practices== | ==Alternative practices== | ||
Some organizations have developed alternative advertising models. The Guardian implemented a "contextual advertising" model that serves ads based on the content of the page a user is viewing (e.g., food ingredients on a recipe page). The company described it as "a perfect advertising product for a privacy conscious brand." In 2023, they reported a 35% increase in clicks with this model.<ref>{{Cite web |last=Maher |first=Bron |title=Guardian gets around readers who reject cookies with new advertising product |url=https://pressgazette.co.uk/marketing/guardian-light-reject-cookies-advertising-stereotype/ |url-access=limited |website=Press Gazette |date=21 Nov 2023 |access-date=1 Sep 2025 |url-status=live |archive-url=https://web.archive.org/web/20231128184011/https://pressgazette.co.uk/marketing/guardian-light-reject-cookies-advertising-stereotype/ |archive-date=28 Nov 2023}}<nowiki>}}</nowiki></ref> | Some organizations have developed alternative advertising models. The Guardian implemented a "contextual advertising" model that serves ads based on the content of the page a user is viewing (e.g., food ingredients on a recipe page). The company described it as "a perfect advertising product for a privacy conscious brand." In 2023, they reported a 35% increase in ad clicks with this model.<ref>{{Cite web |last=Maher |first=Bron |title=Guardian gets around readers who reject cookies with new advertising product |url=https://pressgazette.co.uk/marketing/guardian-light-reject-cookies-advertising-stereotype/ |url-access=limited |website=Press Gazette |date=21 Nov 2023 |access-date=1 Sep 2025 |url-status=live |archive-url=https://web.archive.org/web/20231128184011/https://pressgazette.co.uk/marketing/guardian-light-reject-cookies-advertising-stereotype/ |archive-date=28 Nov 2023}}<nowiki>}}</nowiki></ref> | ||
==References== | ==References== | ||