What's happened?
Meta recently announced that it will begin offering users in the UK an ad-free subscription option on Facebook and Instagram. Users will be able to decide whether they wish to continue using the services for free, with targeted advertisements, or pay a monthly fee for ad-free usage. This is being branded as the “consent or pay” model. Similar models are already in use across a range of online services, particularly among news publishers.
The ICO's comments
The ICO’s guidance states: “Consent or pay” models can be compliant with data protection law if you can demonstrate that people can freely give their consent and the models meet the other requirements set out in the law. The ICO's guidance also notes that, in its view, “consent or pay” models differ from a “take it or leave it” model, as the presence of a “pay” option means that accessing the service is not solely conditional on providing consent.
This development comes after the ICO raised concerns about how online platforms are using personal information for advertising. The ICO has also criticised Meta specifically, noting that its approach to using targeted ads by including them as part of its standard terms and conditions is not in line with UK law.
In a statement, the ICO advised that it welcomes Meta's decision to introduce these changes. It acknowledged that by amending its services, Meta has taken steps to address allegations of non-compliance. Specifically, Meta has responded to the ICO's request for UK consumers to be offered a fair choice over whether they wish to receive targeted ads. Meta has also lowered the starting price at which users are offered the subscription.
A broader shift
This development reflects a wider shift in the industry. Tech firms are facing increased pressure from regulators over the use of personal data and targeted advertising. Other large organisations, including Google and Apple, have also introduced changes to their privacy policies. This pattern may indicate a change in the market’s attitude towards compliance and could lead to more organisations following suit.
In its statement, the ICO highlighted that there is a balance to be struck between data protection and the commercial concerns of online platforms. It outlined the importance of meaningful transparency in relation to how data is used. However, it also recognised that the ability to operate commercially is, of course, a key consideration for online platforms.
Going forward, the ICO will continue to monitor the development of Meta's services, alongside the broader impacts of consent-or-pay models in the online market. It will also maintain its overarching goal of promoting compliance and transparency within the industry.
This article was co-authored by Eve Gunson, Trainee Solicitor in MFMac's Commercial team.
