NOYB report highlights false choice offered by Consent or Pay business models

A new report by the privacy and digital rights advocacy group NOYB looks at the rise of companies adopting Consent or Pay business models in Europe. The report finds that many online service providers, platforms and businesses are using such systems, including Meta, instead of giving users a genuine choice whether to accept or reject ad tracking.

Meta introduced its paid subscription plans for Facebook and Instagram users in November 2023, following a July 2023 ruling by the Court of Justice of the European Union (CJEU) that declared Meta's previous data handling practices illegal. NOYB notes that this Consent or Pay model originated with news media websites seeking to boost consent rates.

Supporters of Consent or Pay often claim it is economically necessary to maintain the financial viability of quality media publications; however, the report indicates that digital advertising accounts for only about 10% of press revenue, with targeted advertising contributing an even smaller 5%. This highlights a significant disparity between the cost of the "Pay" option, which the report claims equates to €3.24 per user per month, compared to the €0.24 per user per month that publishers gain from tracking. While Consent or Pay can increase cookie banner-related income by 16.4%, it only boosts overall press income by an average of 0.82%, a minor increase unlikely to save the news industry.

NOYB argues that Consent or Pay undermines the requirement under the  EU General Data Protection Regulation (GDPR) for freely given consent. Given that industry data shows Consent or Pay systems achieve consent rates of 99% to 99.9%, they have a point. Particularly as contrasting studies reveal only 0.16% to 7% of people genuinely wish to be tracked. This vast discrepancy suggests that the system manipulates users into consenting, rather than offering an actual choice.