Cookie “Consent or Pay” Plan: What Will This Mean for Online Advertisers?
"Consent or pay" is a model used by organisations where individuals must consent to the use of their personal information or pay for a service. To comply with data protection laws, organisations must inform individuals clearly about how their personal information will be used and the implications of their decision to consent or decline.
The ICO Consent or Pay Call For Views
The Information Commissioner's Office (ICO) is seeking feedback on consent and pay business models due to the increasing debate surrounding ad-funded online business models. This discussion arises amidst regulatory changes both in the UK and internationally, along with evolving consumer expectations and industry developments.
Specifically, some businesses are exploring the concept of offering users a choice between accessing online services for free in exchange for consenting to personalised advertising or paying for access if they decline consent. This model, often referred to as "consent or pay" or "pay or okay," presents a unique approach to data usage and consumer engagement.
Recognising the importance of regulatory clarity for businesses and the need to inform investment decisions, the ICO aims to provide insights into this model and highlight considerations for organisations contemplating using this. By seeking feedback and offering guidance, the ICO intends to contribute to a better understanding of consent and pay business models in online services.
What Will This Mean for Online Advertisers?
Consent and pay business models will impact online advertisers in several ways. Firstly, there must be a fair balance of power between service providers and users to ensure that users freely consent to personalised ads.
Secondly, advertisers must ensure that ad-funded and paid-for services are equivalent. This means that the choice between personalised ads and premium services should offer similar benefits. Additionally, the fees charged for ad-free services should be reasonable to provide users with a genuine choice.
Advertisers must also ensure transparency in presenting choices to users, providing clear information about the implications of their decisions regarding personalised ads. These considerations will influence the effectiveness and acceptability of consent and pay models for online advertisers.
Transparency is key in building trust and confidence among users. Individuals also have the right to withdraw consent at any time, and organisations must make this process easy and without detriment. While data protection law allows for various business models, certain access mechanisms, like cookie walls that force consent for personalised ads, may not meet expectations of freely given consent.
Organisations must ensure that consent for personalised advertising is freely given, fully informed, and can be withdrawn without consequences. When considering a "consent or pay" model, organisations should prioritise individuals' interests, rights, and freedoms, ensure users are fully aware of their choices, and demonstrate that users make informed decisions. This requires ongoing assessment and alignment with regulatory and industry standards, with further guidance expected to be provided by regulatory bodies.
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