ICO Consultation on “Consent or Pay” Business Models: Factors to Consider and Deadline for Feedback

The Information Commissioner’s Office (ICO) has issued a call for views on the controversial “Consent or pay” models, where users are given the option to consent to their data being processed for targeted advertising or pay a fee to access the service without their data being used in this way. This model, also known as “pay or okay,” has raised concerns about privacy and transparency.

The ICO has stated that UK data protection laws do not outright prohibit these models, but companies implementing them must ensure transparency and provide users with meaningful choices about how their data will be used. The ICO has identified four key factors that companies should consider when implementing these models, including addressing any power imbalances, ensuring equivalence between free and paid services, setting reasonable fees, and incorporating privacy by design principles.

The consultation, open until 17 April 2024, invites input from publishers, advertisers, intermediaries, civil society, academia, and other stakeholders. The ICO emphasizes the importance of considering existing users’ expectations and differentiating the choices presented to them.

Responses to the consultation will inform an update to the ICO’s guidance on cookies and similar technologies. This process aligns with discussions within the European Data Protection Board, which plans to issue an Opinion on these models. The Covington team is closely monitoring these developments and available to assist with any questions related to the consultation or other matters.