What is consent or pay model?
The “consent or pay” also known as “pay or ok” is a business model where businesses provide users with the option to access their online services for free by consenting to the use of their personal data or paying a fee to access a service without sharing personal data.
In the consent or pay model, if users opt for:
- Consent: They permit data collection for free access to services. This data is often used for tracking purposes or to serve targeted advertising.
- Pay: Users agree to pay a subscription or one-time fee for access without data collection, prioritising privacy or an ad-free experience.
The European Data Protection Board (EDPB) in its Opinion in April 2024 noted that current “consent or pay” models often fail to provide real choice, as users feel pressured to consent or pay, which may not meet valid consent standards.