"Pay or Agree": How Much Does It Cost to Stop Being Tracked on the Internet?

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The British regulator shared the success of the development of a new network model.

The UK's data protection regulator, the Information Commissioner's Office (ICO), has reported progress in cracking down on sites that track users without their consent. Some sites have switched to the controversial "pay or agree" model after the ICO intervention. It requires either payment to access the content or consent to track in order to serve ads.

The ICO does not specify which sites have switched to such a system, but in its statement, the regulator made public the facts of violations by a number of companies that do not comply with the rules for the use of cookies. One of these companies was Bonne Terre, the owner of the Sky Betting and Gaming brand, which transferred their data to advertising companies without the consent of users.

From January to March 2023, SkyBet collected and used personal data to serve personalized ads before users had a chance to opt in or out of cookies.

The breach has become particularly important amid growing concerns about the impact of such tracing on vulnerable populations, in particular people with addictions. While other companies avoided similar violations, Sky Betting received an official warning from the ICO. The regulator noted that it did not apply stricter sanctions, as Bonne Terre actively cooperated and took steps to improve its work.

This warning is part of a larger ICO campaign aimed at combating violations in the field of consent to the use of cookies. Earlier, the regulator conducted an audit of the 100 largest sites in the UK, revealing violations on 53 of them. The ICO sent letters to the infringing sites demanding that the inconsistencies be eliminated, which has already led to changes to 52 of them.

One of the methods that the ICO pointed to is the introduction of a "pay or agree" model, which has already caused a wave of criticism from human rights activists and regulators in the European Union. For example, Meta* used a similar practice on its Facebook* and Instagram* platforms, which drew attention to both data protection issues and market violations. However, the ICO declined to specify whether Meta was among the owners of the sites to whom the letter was sent regarding compliance with cookie rules.

Some changes to the sites include the appearance of a "reject all" button, which was not there before, other changes included the equal placement of the "accept all" and "reject all" buttons, and some sites introduced alternatives such as "consent or payment" – a model the legitimacy of which the ICO is now studying.

In addition to issuing a public warning to Sky Betting, the ICO also issued a public reprimand to Tattle Life, which the regulator said was the only one of 53 sites to opt out. In relation to Tattle Life, the ICO will open an investigation into the use of cookies and a possible violation of the obligation to register a company in the ICO.

Despite the criticism, the regulator has not yet taken a final position on the issue, although it is consulting with a number of companies. In particular, the ICO noted that it is closely monitoring the development of the model and will continue to monitor its application. The regulator is expected to present its point of view on the "pay or agree" model towards the end of 2024.

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