Consent-or-pay: Difference between revisions
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==Why it is a problem== | ==Why it is a problem== | ||
=== Invalid consent === | |||
This binary model of data collection creates the illusion of consent because users are compelled to choose one of two bad options, both of which require loss in exchange for content that is generally considered free access. | |||
=== Lack of informed consent === | |||
Companies often inform users that cookies and data collection are for "personalized ads" and "improving services." What they do not express is how a user's personal data is stored in data centers, shared among third-parties, sold to data brokers, and often become publicized through breaches. Users underestimate the costs of giving away their personal data, believing that advertisements of their interests are a fair trade-off. | |||
=== False equivalence === | |||
The consent-or-pay model creates a false equivalence between two options. It denotes that the company loses, say, $2 or $5 a month when a user rejects targeted ads. This is an impossible metric considering that there is no way to guess whether the individual user would have purchased any item that is advertised to them. At best, this means the monthly fee is completely arbitrary. At worst, it is based upon a percentage of users who do happen to make purchases and is then unfairly distributed upon all users, irrespective of purchase or ad consumption, which is also known as ''average revenue per user (ARPU).'' | |||
=== Illusion of fair exchange === | |||
For users, the consent-or-pay model leads to a false belief that a fair exchange is taking place. When a company asks for a price as low as $2 a month while seeking data collection as a "free" alternative, the user is led to believe that they are fairly reimbursing the company for loss ad revenue, especially for such a low monthly fee. In susceptible users, they may be tricked into believing this is a fair and ethical decision they are making, thus happily choosing to engage in a deliberately misleading practice. | |||
==Meta investigation and fine== | ==Meta investigation and fine== | ||
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===Criticisms from policymakers=== | ===Criticisms from policymakers=== | ||
In 2024, the European Data Protection Board (EDPB) published an opinion on "Valid Consent in the Context of Consent or Pay Models Implemented by Large Online Platforms." The EDPB denotes that the consent-or-pay model does not constitute as valid consent and that appropriate alternative measures to the model should provide users with an "equivalent alternative." Additionally, they say that if a company wishes to use a payment model, then the opposing | In 2024, the European Data Protection Board (EDPB) published an opinion on "Valid Consent in the Context of Consent or Pay Models Implemented by Large Online Platforms." The EDPB denotes that the consent-or-pay model does not constitute as valid consent and that appropriate alternative measures to the model should provide users with an "equivalent alternative." Additionally, they say that if a company wishes to use a payment model, then the opposing equal alternative should not involve processing personal data. Any choice in which users feel compelled to consent does not qualify as valid consent.<ref name=":0">{{Cite web |date=17 April 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 |website=European Data Protection Board}}</ref> | ||
Anu Talus, Chair of the EDPB, said:<blockquote>“Online platforms should give users a real choice when employing ‘consent or pay’ models. The models we have today usually require individuals to either give away all their data or to pay. As a result most users consent to the processing in order to use a service, and they do not understand the full implications of their choices.”<ref name=":0" /></blockquote> | Anu Talus, Chair of the EDPB, said:<blockquote>“Online platforms should give users a real choice when employing ‘consent or pay’ models. The models we have today usually require individuals to either give away all their data or to pay. As a result most users consent to the processing in order to use a service, and they do not understand the full implications of their choices.”<ref name=":0" /></blockquote> | ||