ICO Considers Regulatory Approach to “Consent or Pay” Model for Personalized Advertising Cookies

Autotrader, a popular online platform for buying and selling cars, has recently introduced a new cookies pop-up with both ‘accept all’ and ‘reject all’ options. This move comes as the UK’s information watchdog is considering the regulatory approach to the “consent or pay” model of allowing personalized advertising.

Under the “consent or pay” model, users can choose to either agree to share their personal information for better targeted advertising or pay to keep their data private. This model aims to give users a fair choice over whether they consent to the use of cookies for personalized ads.

The Information Commissioner’s Office (ICO) has sent a letter to the Association of Online Publishers and Internet Advertising Bureau UK, confirming that UK publishers are considering implementing this model. The ICO expects websites using cookies for personalized ads to make it easy for users to reject non-essential advertising cookies as they can accept them.

Publishers believe that the “consent or pay” model could help offset the impact of the ICO’s requirement for websites to display a “reject all cookies” button as prominently as the “accept all” option. DMG Media reported that 93% of Mail Online users chose “accept all” when asked for their cookie preference, while the consent rate dropped to 50% when a prominent “reject all” button was offered.

In Germany, around 80% of news brands now require full consent to third-party advertising cookies or a paid subscription. German tabloid Bild offers a subscription called Bildplus, as well as Bild Pur, which allows users to pay to opt out of personalized advertising.

The ICO has opened a call for views on its regulatory approach to the “consent or pay” model, seeking clarity on how the online advertising industry can use advertising cookies in compliance with data protection law. The ICO emphasized that consent for personalized advertising must be freely given and fully informed, with the ability to be withdrawn without detriment.

The call for views closes on 17 April, as the ICO continues to assess the impact and legality of the “consent or pay” model in the digital advertising landscape. Stay tuned for updates on how this new approach may shape the future of online advertising.