Consent-or-pay: Difference between revisions

*'''Consent''' to the use of [[Web_cookie|cookies]] and personal data for targeted advertising, '''or'''

*'''Pay''' a monthly fee to access the service without tracking.

The practice has been the subject of discussion among regulators, policymakers, and consumer advocates, with many viewing the practice as undermining the principle of meaningful consent within the General Data Protection Regulation. Consent-or-pay has been adopted by a number of large online platforms and news organizations. As of August 2025, 16 of the 50 largest UK news websites had implemented a consent-or-pay model.<ref name="Press Gazette">{{Cite web |first=Charlotte |last=Tobitt |title=Press Gazette, More UK news publishers are adopting 'consent or pay' advertising model |url=https://pressgazette.co.uk/marketing/consent-or-pay-uk-publishers-advertising-2025/ |url-access=limited |date=21 Aug 2025 |access-date=1 Sep 2025 |url-status=live |archive-url=https://web.archive.org/web/20250821204423/https://pressgazette.co.uk/marketing/consent-or-pay-uk-publishers-advertising-2025/ |archive-date=21 Aug 2025}}</ref>

Some companies reported a negative impact on revenue following the regulation's implementation<ref name=":2">{{Cite web |last=Mititelu |first=Andra |date=2023 |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/ |url-status=live |archive-url=https://web.archive.org/web/20230927212627/https://advertisingweek.com/as-the-open-marketplace-fails-advertisers-are-turning-to-publishers-to-reach-audiences/ |archive-date=27 Sep 2023 |access-date=1 Sep 2025 |website=Advertising Week}}</ref>, as the scale of data collection for targeted advertising was reduced. The consent-or-pay model emerged as an approach to address this change.

*Users must now either pay with their personal data or with a monetary fee.

This effectively introduces a paywall for content that is considered freely available, even in the absence of a traditional subscription model.

==Why it is a problem==

===Invalid consent===

This binary choice model raises questions about the validity of consent as users are required to choose between two options, both of which involve a form of payment for content that is considered free.

===Lack of informed consent===

Companies typically state that cookies and data collection are for "personalized ads" and "improving services." The extent to which user data is stored, shared with third-parties, sold to data brokers, or potentially exposed in data breaches is often not detailed. This may lead to users underestimating the long-term implications of sharing their personal data.

===False equivalence===

The consent-or-pay model equates the value of a user's data to a specific monetary amount. The methodology for calculating this equivalent monthly fee comes into question as it is difficult to ascertain the precise advertising revenue generated from an individual user. The fee is often based on an average revenue per user (ARPU) metric, which applies a generalized value to all users regardless of their individual engagement with advertisements and despite studies suggesting that data cannot be fairly valued<ref>{{Cite web |last=Fleckenstein |first=Mike |date=26 Jan 2023 |title=A Review of Data Valuation Approaches and Building and Scoring a Data Valuation Model |url=https://hdsr.mitpress.mit.edu/pub/1qxkrnig/release/1 |website=HDSR. MIT Press |url-status=live |archive-url=http://web.archive.org/web/20251121151158/https://hdsr.mitpress.mit.edu/pub/1qxkrnig/release/1 |archive-date=21 Nov 2025}}</ref><ref>{{Cite web |last=Diehl |first=Hannah |date=14 Jun 2025 |title=Semivalue-based data valuation is arbitrary and gameable |url=https://arxiv.org/abs/2506.12619 |url-status=live |archive-url=https://web.archive.org/web/20250618093423/https://arxiv.org/abs/2506.12619 |archive-date=2025-06-18 |access-date=2025-10-02 |website=Cornell University}}</ref><ref>{{Cite web |date=27 Jun 2025 |title=Why ARPU Lies: The Danger of Averages in Pricing Analytics |url=https://www.getmonetizely.com/articles/why-arpu-lies-the-danger-of-averages-in-pricing-analytics |website=Monetizely |url-status=live |archive-url=https://web.archive.org/web/20260216031544/https://www.getmonetizely.com/articles/why-arpu-lies-the-danger-of-averages-in-pricing-analytics |archive-date=16 Feb 2026}}</ref>.

===Illusion of a fair exchange===

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 |url-status=live |archive-url=http://web.archive.org/web/20251217051549/https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3582 |archive-date=17 Dec 2025}}</ref> Meta was fined €228 million in April, and by July, the European Commission warned 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://ghostarchive.org/archive/zHICl |archive-date=24 Feb 2026}}</ref>

==Uses==

*MeridioNews

 

 

<gallery mode="slideshow">

File:MeridioNews consent-or-pay.png|alt=Screenshot of MeridioNews' consent-or-pay policy viewed on a mobile browser. (written in Italian)|Screenshot of MeridioNews' consent-or-pay policy appearing after rejecting cookies on [https://meridionews.it/piazzale-anita-garibaldi-ennesimo-raid-dei-vandali-la-provocazione-di-artale-mettiamo-una-garitta/ one of their articles]

File:MeridioNews consent-or-pay translated.png|alt=(machine-translated from Italian) screenshot of MeridioNews' consent-or-pay policy appearing after rejecting cookies on one of their articles, viewed from a mobile device|(machine-translated) screenshot of MeridioNews' consent-or-pay policy

 

===Regulatory agencies===

In 2024, the European Data Protection Board (EDPB) published a non-binding opinion on "Valid Consent in the Context of Consent or Pay Models Implemented by Large Online Platforms." The opinion stated that the consent-or-pay model does not constitute valid consent and that appropriate alternative measures should provide users with an "equivalent alternative." Furthermore, it noted that if a payment model is offered, the alternative should not involve processing personal data. Choices in which users feel compelled to consent does not qualify as valid consent.<ref name=":0">{{Cite web |date=17 Apr 2024 |title=EDPB: 'Consent or Pay' models should offer real choice |url=https://www.edpb.europa.eu/news/news/2024/edpb-consent-or-pay-models-should-offer-real-choice_en |url-status=dead |archive-url=https://web.archive.org/web/20250711204531/https://www.edpb.europa.eu/news/news/2024/edpb-consent-or-pay-models-should-offer-real-choice_en |archive-date=11 Jul 2025 |access-date=1 Sep 2025 |website=European Data Protection Board}}</ref>

"[[NOYB|noyb]]" is a data protection advocacy organization based in Austria that focuses primarily on compliance and violations of the General Data Protection Regulation<ref>{{Cite web |title=About Us |url=https://noyb.eu/en/about-us |website=noyb |url-status=live |archive-url=http://web.archive.org/web/20260203194254/https://noyb.eu/en/about-us |archive-date=3 Feb 2026}}</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 |url-status=live |archive-url=http://web.archive.org/web/20250623121759/https://noyb.eu/sites/default/files/2023-11/Complaint%20-%20Meta%20Pay%20or%20Okay%20-%20REDACTED.pdf |archive-date=23 Jun 2025}}</ref> The complaint cited the high costs of rejecting personalized ads, which was €12.99 per month for [[Facebook]] and €8 per month for [[Instagram]], approximating a combined annual cost of €251.88.<ref name=":1">{{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 |url-status=live |archive-url=http://web.archive.org/web/20251220194353/https://noyb.eu/en/noyb-files-gdpr-complaint-against-meta-over-pay-or-okay |archive-date=20 Dec 2025}}</ref> ''noyb'' expressed concern that Meta's approach could set a precedent for other platforms, potentially leading to €35,000 per family when combined with other platforms and websites<ref name=":1" />.

''The Open Marketplace'', once considered the easiest and most efficient platform for advertisers and publishers to transact, has been facing steady decline since the General Data Protection went into effect<ref name=":2" />. In a report by Advertising Week published in September 2023, advertisers using Open Marketplace were reaching only roughly 30% of their audience, meaning that 70% of advertising efforts were wasted due to users opting out of data collection<ref name=":2" />. Their findings were based upon a report from ''Nano Interactive,'' a company that claims to be "at the forefront of privacy-first, identity-free online advertising"<ref>{{Cite web |title=Who We Are |url=https://www.nanointeractive.com/company/ |website=Nano Interactive |url-status=live |archive-url=http://web.archive.org/web/20260203070810/https://www.nanointeractive.com/company/ |archive-date=3 Feb 2026}}</ref>, in which the company surveyed 2,000 UK consumers and found that 70% of them rejected cookies using various methods (VPN, incognito mode, clearing cache, etc)<ref name=":3">{{Cite web |title=UK Cookie-Blocking Research |url=https://www.nanointeractive.com/tipping-point-research/ |website=Nano Interactive |url-status=live |archive-url=http://web.archive.org/web/20260112164552/https://www.nanointeractive.com/tipping-point-research/ |archive-date=12 Jan 2026}}</ref><ref name=":4">{{Cite web |last=O'Connell |first=Vanessa |date=9 May 2023 |title=70% of consumers blocking cookies online, research shows |url=https://www.thedrum.com/opinion/2023/05/09/70-consumers-blocking-cookies-online-research-shows |url-status=live |archive-url=https://web.archive.org/web/20230511090722/https://www.thedrum.com/opinion/2023/05/09/70-consumers-blocking-cookies-online-research-shows |archive-date=11 May 2023 |access-date=1 Sep 2025 |website=The Drum}}</ref>.

''The Drum'' reported on that same survey by noting the increasing discomfort consumers have on trading personal data for free content<ref name=":4" />. Those in the survey were split 30-30% on whether they view this as a fair exchange, but over half believe advertisers should find better ways to make ads relevant. Additionally, it was reported that of consumers who are concerned about privacy, 42% report data collection as their biggest concern, while only 31% are concerned with data breaches or online scams respectively<ref name=":3" /><ref name=":4" />.

'''Contextual advertising''' is a model that serves ads based on the content of the page a user is viewing (e.g., food ingredients on a recipe page). This advertising model had once been considered the standard on the internet and has returned in high numbers since the General Data Protection Regulation went into effect<ref name=":5">{{Cite web |last=Davies |first=Jessica |date=7 Jun 2018 |title=‘Personalization diminished’: In the GDPR era, contextual targeting is making a comeback |url=https://digiday.com/media/personalization-diminished-gdpr-era-contextual-targeting-making-comeback/ |website=Digiday |url-status=live |archive-url=http://web.archive.org/web/20251110100214/https://digiday.com/media/personalization-diminished-gdpr-era-contextual-targeting-making-comeback/ |archive-date=10 Nov 2025}}</ref><ref name=":6">{{Cite web |last=Maher |first=Bron |date=21 Nov 2023 |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 |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 |access-date=1 Sep 2025 |website=Press Gazette}}<nowiki>}}</nowiki></ref>. ''The Guardian'', a UK-based news organization, reported a 35% increase in ad clicks after emplying this model, describing it as "a perfect advertising product for a privacy conscious brand"<ref name=":6" />. An article from ''Digiday'' reports that some publishers had long complained at the loss of contextual advertising in the rush to micro-target through personalized ads<ref name=":5" />. They state the infamous ''ad-pocalypse'' from YouTube could have been avoided if advertisers stuck with contextual advertising instead of following users around the internet<ref name=":6" />.

==See also==

*[[Europe-based news sites enact consent-or-pay for data tracking]]

*[https://noyb.eu/en/years-inactivity-pay-or-ok-cases-noyb-sues-german-dpas Years of inactivity in “Pay or OK” cases: noyb sues German DPAs]

*[https://noyb.eu/en/noybs-pay-or-okay-report-how-companies-make-you-pay-privacy noyb's Pay or Okay report: how companies make you pay for privacy]

*[https://digiday.com/media/personalization-diminished-gdpr-era-contextual-targeting-making-comeback/ ‘Personalization diminished’: In the GDPR era, contextual targeting is making a comeback]