Consent-or-pay
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Consent-or-pay, also known as consent-or-okay, is a business model implemented in response to the European Union's General Data Protection Regulation (GDPR). Under this model, users of a website are presented with a choice to either:
- Consent to the use of cookies and personal data for targeted advertising, or
- Pay a small 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.[1]
Background
edit- Main article: General Data Protection Regulation
The General Data Protection Regulation was enacted in 2018 with the objective of protecting online users from extensive data collection by companies. The regulation requires companies to obtain user consent for data collection, which is typically facilitated through an opt-in banner or pop-up on a website[citation needed].
Some companies reported a negative impact on revenue following the regulation's implementation[citation needed], as the scale of data collection for targeted advertising was reduced. The consent-or-pay model emerged as one approach to address this change.
How it works
editWhen a user visits a website, a pop-up consent window is displayed. While traditional options were to Accept or Reject cookies, the consent-or-pay model presents users with the options to Accept or Pay.
- The payment is typically a monthly fee (e.g. £1.99 per month)[citation needed].
- Many sites employing this model were previously free-to-access and funded primarily through advertising.
- 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
editInvalid consent
editThis 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
editCompanies 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
editThe 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 has been questioned[citation needed - by who?], 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[citation needed].
Illusion of a fair exchange
editThe model can create a perception that a fair exchange is taking place. By offering a seemingly low monthly fee as an alternative to data collection, users may believe they are compensating the company fairly for lost advertising revenue. This can influence the decision-making process regarding data privacy.
Meta investigation and fine
editFollowing 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.[2] 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.[3]
Uses
editNews organizations
editSeveral media outlets in Europe have adopted consent-or-pay models, including:
- The Mirror
- The Independent
- Der Spiegel
- Der Standard
- Le Monde
- Le Parisien
- Corriere della Sera
- MeridioNews
-
Screenshot of MeridioNews' consent-or-pay policy appearing after rejecting cookies on one of their articles
-
(machine-translated) screenshot of MeridioNews' consent-or-pay policy
Critical response
editRegulatory agencies
editIn 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.[4]
Anu Talus, Chair of the EDPB, said:
"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."[4]
Consumer advocacy groups
edit"noyb" is a data protection advocacy organization based in Austria that focuses primarily on compliance and violations of the General Data Protection Regulation[5]. 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".[6] 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.[7] 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[7].
Effectiveness
editThe impact of the consent-or-pay model varies.
- Advertising Week reported in September 2023 that 30% of users accepted cookies post-GDPR.[8]
- In 2023, The Drum reported that approximately 40% of users employed a VPN to bypass regional consent-or-pay restrictions.[9]
- In 2025, the Press Gazette stated, "When users are equally offered the chance to 'accept all' or 'reject all' cookies, consent rates are typically somewhere around 70-80%, according to both Skovgaards and Contentpass founder Dirk Freytag".[1]
Alternative practices
editSome 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[10].
See also
editEurope-based news sites enact consent-or-pay for data tracking
Years of inactivity in “Pay or OK” cases: noyb sues German DPAs
noyb's Pay or Okay report: how companies make you pay for privacy
References
edit- ↑ 1.0 1.1 Tobitt, Charlotte (21 Aug 2025). "Press Gazette, More UK news publishers are adopting 'consent or pay' advertising model". Archived from the original on 21 Aug 2025. Retrieved 1 Sep 2025.
- ↑ "Commission sends preliminary findings to Meta over its "Pay or Consent" model for breach of the Digital Markets Act". European Commission. 30 Jun 2024.
- ↑ Foo Yun Chee (27 Jun 2025). "Meta may face daily fines over pay-or-consent model, EU warns". Reuters. Archived from the original on 1 Sep 2025. Retrieved 1 Sep 2025.
- ↑ 4.0 4.1 "EDPB: 'Consent or Pay' models should offer real choice". European Data Protection Board. 17 Apr 2024. Archived from the original on 11 Jul 2025. Retrieved 1 Sep 2025.
- ↑ "About Us". noyb.
- ↑ "COMPLAINT UNDER ARTICLE 77(1) GDPR" (PDF). noyb - European Centre for Digital Rights. 28 Nov 2023.
- ↑ 7.0 7.1 "noyb files GDPR complaint against Meta over "Pay or Okay"". noyb. 28 Nov 2023.
- ↑ Mititelu, Andra (2023). "As the Open Marketplace Fails, Advertisers Are Turning to Publishers to Reach Audiences". Advertising Week. Archived from the original on 27 Sep 2023. Retrieved 1 Sep 2025.
- ↑ O'Connell, Vanessa (9 May 2023). "70% of consumers blocking cookies online, research shows". The Drum. Archived from the original on 11 May 2023. Retrieved 1 Sep 2025.
- ↑ Maher, Bron (21 Nov 2023). "Guardian gets around readers who reject cookies with new advertising product". Press Gazette. Archived from the original on 28 Nov 2023. Retrieved 1 Sep 2025.}}