The “Pay or Consent” Model
How to Balance Monetizing Personal Data with Privacy Protection and User Rights?
by mercedes galán
Experts: Norman Heckh, a partner at Ramón y Cajal Abogados; Ruth Benito, of counsel at Elzaburu and Daniel López, partner at Ecija.
The “pay or consent” model, which offers users free access to services in exchange for consenting to the use of their data or a paid option without sharing information, presents ethical and legal challenges. Norman Heckh, a partner at Ramón y Cajal Abogados, highlights that this model “limits free access to content, causing frustration for users, while paid options allow for an ad-free experience by rejecting advertising cookies.”
ETHICAL AND LEGAL CONSIDERATIONS
This approach offers a choice between privacy and free access, but consent may not be fully informed. Ruth Benito, of counsel at Elzaburu, warns: “When implementing this model, systems should be put in place to prevent user abuse, avoiding deception or pressure to consent when the alternative is not equivalent or involves more effort. A fair balance is sought.”
Daniel López, partner at Ecija, points out that, although there is no explicit prohibition of the model, authorities demand greater guarantees in its application. “An alternative system with less personal data processing or anonymized data could be considered, although this would complicate personalized advertising.”
The EDPB’s opinion states that strict compliance with the GDPR is necessary, ensuring that consent is free, specific, and informed, without coercion or manipulation. As López highlights, there is a debate over whether this consent should be understood as data protection or contractual acceptance. While free access to content may seem legitimate, it involves an associated cost. The key is to define the need for the model and the additional guarantees to protect users’ rights.
