Is There a Price For Privacy?
The "Consent or Pay" Business Model
A concerning trend has surfaced: websites are now charging users for the option to opt out of cookie tracking. The "consent or pay" model, often referred to as "pay or okay", offers users three choices when they visit a website. They can either accept tracking cookies, pay a fee to refuse them or not use the website at all. Businesses are using the model to create a revenue stream by capitalising on our personal data. If you accept the cookies, the business can sell your data for targeted advertising. If you choose to reject the cookies, they profit from the fee you pay. "Consent or pay" is becoming a popular choice for the news industry. Newspapers such as The Mail Online, The Independent, The Express, Daily Mirror and Daily Express are adopting it. Meta has also experimented with the "consent or pay" model. They have introduced it to Facebook and Instagram users in the EU, raising concerns that it may be against EU law.
Legal Compliance: Does "Consent or Pay" Meet the Law?
As data protection laws evolve, a question emerges: does the "consent or pay" model comply with current legal frameworks? The Information Commissioner's Office (ICO) has launched a consultation relating to the "consent or pay" model. Currently, the model is not against UK law. This remains true provided that the website clearly presents users with genuine choices. The websites should also allow users to update their preferences at any time. We expect the ICO to publish the findings from its consultation later this year. The European Data Protection Board (EDPB) published an opinion on the model earlier this year. They stated that large online platforms may struggle to comply with valid consent requirements if offered a binary choice. This is because the choice offered is limiting to consenting and paying a fee. The EDPB argues that this practise can harm users and there should be an alternative that does not require either payment or consent. The conclusion in the EDPB opinion was that the "consent or pay" is unlikely to be legal in many cases.
Sustainability Considerations
The Sustainable Web Manifesto outlines six principles for creating sustainable websites: clean, efficient, open, honest, regenerative and resilient. The open principle explains that everyone should have access to the website and users should have control of their data. The "consent or pay" concept undermines this principle. It penalises users who may not afford to pay yet wish to safeguard their personal data. Additionally, the honest principle seeks to prevent websites from exploiting users. By monetising privacy, the "consent or pay" model risks exploiting individuals for financial gain. It is crucial that users fully understand what they are consenting to. Websites should transparently explain how they will use personal data. This includes how they may share it with third parties and in turn what these third parties will do.
Understanding Privacy Protection Responsibilities
Companies have a responsibility to protect our online data. They need to follow the regulations outlined in GDPR. They should clearly outline how they collect, use and store personal data. Websites should inform users of any cookies that are used to track and collect personal data. There should be details of what they are doing and why. They also need consent that the user agrees to the use of all non-essential cookies. Companies use the data to provide targeted advertising and product recommendations. They also sell the data on to companies that analyse user behaviour. It is important that we protect our data. Criminals are able to use your personal data to either scam you or impersonate you and commit fraud. Stay vigilant about the data that you share and ensure you take proactive steps to protect it. You can read about how the website is planning to use your data and choose to opt out of any tracking. It is useful to check the privacy settings on websites that you enter a lot of personal information into, such as social media. Be vigilant and ensure you understand why a website needs the information they are requesting.
Why are Businesses using "consent or pay"?
The news industry has increasingly adopted the "consent or pay" model. This is in response to declining sales of both printed newspapers and online advertising. Sales of printed newspapers have been falling by over 10% each year. This has led to the industry relying on advertising and paywalls. However, advertisers are shifting investments towards social media, influencers and brand deals instead. This has meant that the newspapers are looking elsewhere to make a profit. Providing online content incurs costs, such as developer salaries, hosting fees, and content creation. Many websites rely on advertising to recoup these expenses, making the "consent or pay" model an attractive alternative.
Exploring Alternatives to "Consent or Pay"
At the end of the day, these websites are using "consent or pay" to generate a profit. There are ethical alternatives that organisations can explore. Some websites categorise their content or functionality into different tiers. They will then offer users access to part of this for free or everything by paying a premium subscription. Users are then able to make an informed decision on how much of the website they wish to access. Organisations could keep the content on their website free and ask for voluntary donations. Users will then be free to choose whether they wish to support the organisation by making a secure donation. Websites could display contextual adverts instead of behavioural adverts. Behavioural advertising uses tracking data to display personalised adverts based on their browsing history. This is the type of advertising that is breaching personal data privacy. For example, if someone is searching and visiting websites about DIY, the adverts could target tools the user might need. Whereas contextual advertising uses the host to determine the subject of the advert. There is no need to know details of the user as their presence on the page indicates an interest. For example, a webpage displaying recipes could advertise cooking utensils.
Trust Issues: How Users Perceive the Model
The "consent or pay" model could divide users when it comes to trust. Some users will feel that they can trust the website more if they are clear about their privacy options. Users can be reassured because they have paid to reject tracking. The website has already benefited so they should respect the privacy. On the other hand, some users may be sceptical of websites that want to monetise something that should be a given right. They may question whether they are genuine and respecting your wishes.
Empowering Yourself Through Education
It is useful to know about your rights when it comes to personal data. We can then decide whether to share the information and who with. It also adds protection from the misuse of the data that could cause harm to uses. The Information Commissioner's Office (ICO) is a good resource for both individuals and organisations. It outlines your rights relating to personal information and further information on how to protect it. It advises organisations on what measures to put in place to inform and protect your clients. Gov.uk has information about the Data Protection Act 2018 and your rights.
Final Thoughts
As a society, we are becoming more aware of our personal data in terms of its use and our rights. As we move forward, it is crucial to critically evaluate the implications of models like "consent or pay". The more informed we are, the better equipped we are to make a decision. Consider these questions as you navigate your online presence: Why do websites require your data? What proactive steps can you take to safeguard your privacy? Is it truly fair to pay for privacy?