ECJ Opens Door for More Advertising Without Consent

"The decision primarily affects companies that rely on digital business models or freemium offerings. The ECJ clarifies that even a free registration can be considered a business relationship-as long as personal data with economic value is collected. This opens up a new way for many providers to use email advertising strategically. How the Ruling Came About According to " Retail News," the trigger was a Romanian media company operating a freemium model: Users could register for free, gaining limited access to content-but also regularly receiving newsletters with promotional content."

"The Romanian data protection authority saw this as a violation, as there was no explicit consent from recipients. The company argued that the emails were part of the user relationship-the case went to the ECJ. The European Court of Justice had to determine whether such messages are considered unauthorized direct advertising and whether a free registration already constitutes a business relationship under the European e-Privacy Directive. The judges decided: Yes, under certain circumstances, a freemium model can be considered a "sale" because user data has economic value. This means companies can send promotional emails within narrow limits without obtaining separate consent. The condition is that the advertising relates to their own similar products or services and that users are clearly informed of their right to object during registration and in every email."

The European Court of Justice ruling (C-654/23) allows promotional emails without separate consent when a freemium registration constitutes a business relationship because personal data has economic value. The decision mainly affects digital business models and freemium providers that collect economically valuable personal data during free sign-ups. A Romanian freemium media case triggered the legal review after the data protection authority flagged newsletters sent without explicit consent. Companies may send promotional emails within narrow limits if advertising concerns their own similar products or services and users are clearly informed of their right to object at registration and in every email.

Read at TECHBOOK