“Do you want to subscribe or want to keep using our products for free with ads?” That's the question that all Meta users have been asked. Of course, as a marketer, that's a bit of a shock. What kind of effect is this going to have? Is this a temporary solution where Meta found a loophole in the new legislation or does it comply with the law? We have developed it in a blog that will hopefully reassure you a little more.
In 2018, the GDPR came into effect, which had far-reaching consequences for companies that process personal data. This includes not only traditional personal information, but also cookie IDs and other data that can be used to identify individuals. Under these laws, companies must have a legal basis to process this data, and consent is one option.
One challenge companies face is that ads are often not preferred by users. Obtaining consent to process data for targeted ads can lead to lower conversions, as people are more likely to say “no”.
Companies must have a basis for processing personal data. This may be to execute an agreement, such as processing salary payments, where consent is not required. However, Meta has claimed that digital ads are an integral part of the service they offer, and therefore consent is not necessary. However, this position has been criticised by the European Data Protection Board (EDPB) because of its limited nature.
Meta later switched to the legitimate interest argument to justify processing personal data for ads. However, this interest is considered limited, and it is disputed whether it is in users' interests not to be traced. It is stated that Meta's financial interest outweighs users' interest in not being followed.
An important aspect of these developments is that companies need to be more honest about using user data for personalized ads. Users can choose to pay money for personalized ads instead of random ads. However, this raises the question of whether privacy rights are only available to those who can afford these additional costs.
It may sound scary, but is that what it is? And how far do they go with your personal information?
Sharing personal data has its advantages and can be managed via privacy settings, making concerns less scary than they first appear.
Regulators have not said that advertising is completely prohibited. However, it is important that advertising is based on consent and not on the basis of the execution of an agreement or legitimate interest. Supervisors are often slow in their decision-making, which means that current regulations may not be sufficient to keep up with rapidly changing technological developments.
Privacy laws and how tech companies like Meta handle user data are subject to constant change and legal disputes.
Currently, the decision has been made that Meta must obtain consent from their users to use their personal data within two weeks. Although Meta is currently asking for permission (based on subscription form), this is actually not in line with the intentions of the new legislation.
It's important that companies are aware of the requirements of the GDPR and adhere to transparent practices when processing personal data for advertising. Users need to be informed and empowered to make informed choices about their privacy, and the role of regulators is critical to ensure companies act responsibly.
These developments have also opened doors for discussions about who has access to privacy rights and whether they are only available to those who are willing to pay extra. Companies need to be honest and open about their practices and their impact on individual privacy.
Of course, we are still in the middle of the whole change in legislation and we will keep a close eye on this at Yellowgrape.
