If you run a website, app, or otherwise handle customer data, getting consent wrong can cost you — literally. The implementation of opt-in or opt-out consent contributes to whether your practices are privacy-compliant when collecting emails, running targeted ads, and tracking user behavior.
Getting this wrong may not be just a minor compliance mistake. Mishandling consent can result in hefty fines — GDPR penalties can reach up to EUR 20 million or four percent of annual global turnover — damage your brand reputation, and erode customer trust.
That’s why it’s vital to understand the opt-out vs opt-in consent differences, the regulatory requirements surrounding them, users’ rights, and best practices for implementing these models effectively.
At a glance
- Opt-in vs opt out are different in their approaches to collecting user consent and regulatory frameworks that require them.
- Opt-in policy relies on active user participation, transparent communication, and granular marketing control, while opt-out policy is more common in the U.S. and requires transparent tools for consent withdrawal.
- Clarity, transparency, and providing granular options are among the best practices for both opt-in and opt-out consent collection.
- For marketing purposes, the presence of opt-in consent increases user trust and attracts more engaged users, though it calls for providing substantial value in return for personal data.
- Opt-out consent generally reduces onboarding friction, though it requires proactive communication to maintain user trust and protect their data privacy rights.
Opt-out vs opt-in — what’s the difference?
The key opt-in vs opt-out differences lie in the timing and access to user consent. While opt-in requires companies to request explicit agreement before data collection, opt-out assumes user consent unless they take action to withdraw it.
The main commonality with both models is that data controllers that want to collect and process users’ personal data must make information about their data privacy and processing operations readily available. This includes what data is collected and for what purposes, what rights users have and how to exercise them, security measures and data retention, and other details, depending on relevant legal requirements.
Another key difference between opt-in and opt-out lies in the regulatory frameworks that require these models. If you’re targeting European or UK users, for example, the General Data Protection Regulation (GDPR) requires opt-in consent.
For the U.S., the California Privacy Rights Act (CPRA), which amends and expands the California Consumer Privacy Act (CCPA), and other data privacy laws in the U.S. mostly require following the opt-out consent model. Most of the world uses the opt-in model, or a hybrid version that requires opt-in at least sometimes. The U.S. is the only country largely defaulting to opt-out.
What is opt-in?
Opt-in law regarding consent requires website and other platform owners to proactively ask visitors to explicitly agree to the collection, use, or sharing of their personal data. The granularity of consent choice that users must have varies by regulation. Achieving this requires asking permission before or at the point of the data collections, like when a visitor first arrives on the site.
What is opt-in marketing?
Opt-in marketing is the practice where users proactively participate in a company’s marketing activities by providing their consent to share their personal data. For example, providing an email address in order to receive a whitepaper, or agreeing to receive communications or offers from a company’s trusted partners.
For marketers, it means establishing relationships with the target audience and providing a clear value exchange to obtain permission to collect, use, and disclose users’ information.
Opt-in examples
Opt-in examples include requesting user consent for storing cookies, subscribing to marketing emails, and other forms of personal data collection that are not considered essential to fulfilling a required action, such as completing an ecommerce transaction.
For example, when entering the Usercentrics website for the first time, you’ll see the cookie consent banner that asks for consent regarding cookies and tracking technologies the website uses.
By accepting the terms, users indicate their agreement to the company’s privacy policy and legal notice, which are accessible via clickable links above the consent buttons. Also, options are not pre-checked so visitors have free choice.
Pros and cons of opt-in consent
Although opt-in consent can be considered a highly responsible and ethical practice, it can create banner fatigue and, as a result, limit access to user information, which affects marketing and decision-making. In the table below, you can see all the advantages and disadvantages of the opt-in consent model.
| Pros of opt-in consent | Cons of opt-in consent | |
| User control over their privacy | Gives users explicit control and transparency over data sharing, building trust. | Requires active user action, which may cause consent fatigue or frustration over time, and loss of data for marketers. |
| Legal compliance | Supports compliance with many global data privacy regulations, including the GDPR. | Requires specific tools and systems to collect, manage, signal, and securely store consent records, and consent choices need to be consistently applied across the marketing ecosystem. |
| Business impact | Increases the quality and engagement of leads. | Can limit access to the personal information of those who decline consent. Also limits to when or if companies can request consent again in the future. |
| User experience | Contributes to higher engagement and long-term loyalty through proactive transparency and trust-building. | Adds friction in user onboarding and intermittent resurfacing of banners or other consent request mechanisms. |
Opt-in policy: Which global privacy laws require opt-in consent?
Several global privacy laws and frameworks mandate that website owners use an opt-in consent model. In addition to the GDPR, some others include:
- ePrivacy Directive (also known as the “cookie law”, integrated in EU Member States’ national privacy laws)
- Brazil’s Lei Geral de Proteção de Dados (LGPD)
- China’s Personal Information Protection Law (PIPL)
Some other countries, such as Canada with the Personal Information Protection and Electronic Documents Act (PIPEDA), use more hybrid consent models that require opt-in in some instances, but not all.
As for GDPR implementation, opt-in consent is a must to avoid “misunderstanding that the data subject has consented to the particular processing.” As noted, the regulation requires obtaining freely given, specific, informed, and unambiguous consent. Without it, processing personal data is generally prohibited.
Read about GDPR email marketing now
Other opt-in law regulatory requirements tend to follow key GDPR requirements, but with some extra clarifications. For example, the “cookie law” also grants consent rights to legal persons and sets the need for technical privacy settings within the software to collect it.
China’s PIPL provides a long list of exceptions to the opt-in consent obligation, including the need to fulfill statutory duties, respond to sudden public health incidents, or implement news reporting. The regulation does, however, also include a number of compliance requirements unique to China’s law.
What is opt-out?
The opt-out consent model doesn’t require getting explicit user consent before collecting or processing their data in most cases. The most common exceptions to this are data belonging to children and data categorized as sensitive.
However, website owners must provide individuals with clear and accessible ways to withdraw consent at any time for functions like the sale or sharing of their data, or its use for profiling or targeted advertising, depending on jurisdiction.
How opt-out consent works
Under the data privacy opt-out, individuals are responsible for actively refusing their consent if they do not wish to provide their data. If the consent is not declined or withdrawn, a website can collect and use customer data for various purposes, including targeted advertising and sharing with third-party partners.
Some laws that use an opt-out model, like some state-level data privacy laws in the United States, do include specific prohibitions centered around data use, rather than just data type, e.g., prohibiting selling sensitive data or using personal data to profile children.
So what is sensitive data? This is personal information that can be extra harmful if misused and can include information like healthcare history, sexual orientation, financial information, religious beliefs, and more.
In the U.S., the federal Children’s Online Privacy Protection Act (COPPA) governs access to, use, and protections of children’s data, and many of the state-level data privacy laws default to it. Typically, a parent or guardian’s consent is required before children’s data can be collected or used.
What is opt-out marketing?
Opt-out consent means that organizations can include new users in their marketing lists by default, at least for some activities, but must provide a clear opportunity to stop receiving marketing updates later.
It’s important to note, however, that laws like the CAN-SPAM Act in the U.S. further govern data access and use for marketing activities and when and how consent is required. It’s important to be aware of and model marketing activities around all relevant legal requirements, not just the ones that enable the most data access and use.
Opt-out examples
The ways users can act on opt-out consent include unsubscribe links in emails, “Do Not Sell or Share My Personal Information” buttons on the website for residents of California, privacy opt-out, or account settings where they can manage their preferences.
When a customer chooses “Do not sell my personal information,” the website must then honor this request and stop selling or sharing that customer’s data. Some laws require data processing to stop as soon as consent is withdrawn. Others provide a time frame to cease all data processing operations, including those by third parties.
In email marketing, it refers to the process by which customers or recipients of emails, SMS, or push notifications choose to stop receiving promotional messages and unsubscribe from future communications from a company.
One way to maintain opt-in rates is to rely on preference management. Users and customers are more likely to continue to consent to receiving communications from companies if those messages follow the individual’s preferred platform (e.g. SMS over email), frequency, and topics of interest.
Read about email marketing laws now
Pros and cons of opt-out consent
Opt-out may seem easier and beneficial for organizations, but potential disadvantages to this consent method include less refined user data and potential user misunderstandings that threaten their trust in the service.
| Pros of opt-out consent | Cons of opt-out consent | |
| User control over their privacy | Users can withdraw their consent via settings any time. | Visitors risk disclosing their personal information without their full understanding (many people don’t read privacy policies or terms documents). |
| Legal compliance | Suitable for many global data privacy regulations, including the CCPA/CPRA and other U.S. privacy laws. | Risk of noncompliance with other major privacy laws, including the GDPR and COPPA, which require explicit opt-in. |
| Business impact | Maximizes data collection volume for personalization, ads, and analytics from the start. | May reduce data quality by automatically including less engaged users and less relevant data, affecting decision-making. |
| User experience | Reduces onboarding friction with seamless flows, improving conversion and retention. | May erode trust if users feel data is collected without clear initial awareness or prompts. |
Opt-out policy: Which privacy laws allow opt-out consent?
Multiple global privacy laws authorize website owners to use opt-out consent models. These include:
- U.S. state-level privacy laws
- Japan’s Act on the Protection of Personal Information (APPI)
- South Korea’s Personal Information Protection Act (PIPA)
- Singapore’s Personal Data Protection Act (PDPA)
- South Africa’s Protection of Personal Information Act (POPIA)
To comply with CPRA for residents of California, websites must provide clear options to withdraw consent and prominently display a “Do Not Sell or Share My Personal Information” link on their homepage and in their privacy policy.
Also, companies that process sensitive personal data are required to implement a link reading “Limit the Use of My Sensitive Personal Information” to enable visitors to exercise their rights, or a “single, clearly-labeled link… if that link easily allows a consumer to opt out of the sale or sharing of the consumer’s personal information and to limit the use or disclosure of the consumer’s sensitive personal information.”
Read about ecommerce consent requirements now
As noted, specific regulations require these opt-out principles, but include specific requirements and exceptions.
For example, the Utah Consumer Privacy Act (UCPA) defines targeted advertising among the purposes for which it requires opt-out consent. PIPEDA lists collecting a debt, compliance with a subpoena, and statistical research purposes among possible cases when an organization may disclose personal information without the knowledge or consent of the individual.
How to collect opt-in consent?
Design a cookie consent banner
Use friendly and clear messaging
Add unchecked boxes and toggles
Include granular consent options
Add a clear consent withdrawal method
Show consent banner just in time
Keep consent records
A/B test
Best practices to collect opt-in consent
If you collect personal data from people in the EU and other jurisdictions requiring opt-in consent, work with sensitive personal information, personal information from minors, or use non-essential cookies (including third-party cookies), you most likely need explicit prior user consent. This means that you must implement an opt-in consent model, unless another lawful basis for processing applies (in jurisdictions employing lawful basis requirements).
To support privacy- and legally-compliant opt-in consent::
- Be clear and transparent: Use plain, easy-to-understand language to explain what data you’re collecting, how it will be used, other parties that may have access to it, and other required information. Avoid legal or technical jargon or complex terms. This is often done via a cookie consent banner.
- Make it specific: Obtain separate consent for different purposes rather than using blanket consent like “Accept All”. This enables users to choose which activities they want to opt-in to, like analytics or personalized advertising.
- Use active opt-in methods: Use unchecked boxes, toggles set to “off” by default, or explicit confirmation buttons. Avoid pre-ticked boxes or other methods that assume consent, as these dark patterns to encourage consent are strongly frowned upon by authorities, and increasingly illegal under some newer laws.
- Provide granular options: Enable users to select which types of data they’re willing to share or which specific activities they consent to.
- Make it easy to withdraw consent: Provide a clear and simple way for users to change consent preferences or withdraw their consent at any time, and cease processing right away when they do.
- Use just-in-time and contextual consent: Request consent at the moment you need to collect or use the data, providing context for why it’s needed. A blanket “clickwrap” agreement is not compliant with most personal data collection regulations. Functions like requesting consent to play a video or display a map on your site also help users understand the necessity for data access.
- Maintain and protect comprehensive records: Register and securely store detailed records of when and how consent was obtained for each user and what they consented to, along with any changes over time.
- Test different approaches: A/B test different UI configurations, messaging, and/or consent flows to find what works best for your users and encourages high opt-in rates while maintaining privacy compliance.
Best practices to collect opt-out consent
IIf you are collecting and processing personal data in a jurisdiction that allows you to do so without obtaining prior consent, you will still legally need to notify users and enable them to opt out.
- Clear and prominent notice: Provide a clear, conspicuous notice about data collection and use practices, along with information about user rights and exercising them, and an easily accessible opt-out option. Some laws explicitly outline what the opt-out option needs to look like, but others just require it to be clear and prominent.
- Easy opt-out process: Make the opt-out process simple and straightforward. Avoid multi-step processes, excessive verification, or requiring users to create accounts to opt-out.
- Clear communication: Explain in simple terms what opting out means for the user’s experience and what data will no longer be collected or shared.
- Timely response: Process opt-out requests promptly, immediately per some laws, or within 15 days, for example, as the CPRA requires.
- Granular options: Enable users to opt out of specific data uses rather than only offering an all-or-nothing approach. This also benefits marketing operations, as some data collection can be maintained with the user’s consent rather than risking full opt-out.
- Maintain records: Keep detailed records of opt-out requests, including what data collection and processing was halted, what third parties were notified to cease processing, and when the request was received and cessation of processing took place
- Respect opt-out duration: Once a user opts out, honor that choice as long as legally required before asking them to opt back in. This may or may not be an explicit amount of time in regulations relevant to you, but 12 months is common.
- Third-party compliance: Ensure that any third parties you share data with also honor user opt-out choices. Under many laws, the controller has ultimate responsibility for privacy compliance, including the activities of third-party processors working for them.
By implementing these practices, website owners can create a transparent and user-friendly opt-out process that maintains data flows while respecting privacy rights and complying with relevant data protection regulations.
How opt-in and opt-out affect user experience and trust
By requiring explicit agreement, opt-in consent enhances trust by contributing to users’ first impression of the company and providing explicit proof of respect for privacy and transparency about their data operations.In its turn, opt-out consent contributes to a more seamless user experience by minimizing interruptions before engaging with platforms.
Some additional ways that the difference between opt-in and opt-out affects users (and, in turn, revenue):
- Trust: Opt-in requires stronger, verifiable consent and can result in higher-quality data, while opt-out can enable a more concrete feeling of control for users.
- User experience: Opt-in requires more initial engagement but boosts retention, while opt-out accelerates access but may increase confusion or churn due to misunderstandings and later privacy concerns.
- Transparency: Both opting in and opting out tools demonstrate readiness to safeguard users’ rights and personal data, as well as demonstrate commitment to compliance with global data privacy regulations.
Impact of opting in and opting out on marketing performance and data quality
Opt-in consent requires active user agreement, like checking a box before data collection, leading to higher-quality, genuinely interested leads and more engaged customers. It boosts open rates and CTR metrics with pre-qualified recipients who are less likely to mark emails as spam.
Opt-out assumes consent unless users decline, boosting initial data and reach for broad campaigns. It enables larger audiences and list growth, but with possible losses in data quality and user confusion about rights. Compared to opt-in, it can result in lower engagement, higher churn, and spam complaints that hurt deliverability.
It’s a good idea for companies to not only be aware of the requirements of relevant privacy laws, but the pros and cons of adopting best practices rather than just legal minimum actions.
Opt-in vs opt-out for cookies and tracking technologies
Opt-in consent for cookies and trackers requires users to actively express their agreement before use of non-essential cookies begins. Under the GDPR and the ePrivacy Directive in the EU, consent must be explicit, detailed by category, and revocable. Only necessary cookies, like those for site functionality, are loaded by default without permission.
Opt-out consent defaults to permission, letting all cookies load unless users decline. This aligns with less stringent laws, such as the CCPA/CPRA, which only require notification and easy opt-out options.
Opt-in vs opt-out in mobile app consent flows
On mobile apps, both opt-in and opt-out models face screen limitations, which make it harder to follow their consent flows. As permissions to use the camera, location, or contacts from the device may overlap with consent flows, mobile app users experience double-consent friction. The mobile screen banners frequently overlap the content, blocking critical content and irritating users.
Given the tendency toward short attention spans and high user churn common for many mobile app categories, consent decisions are made quickly and the user experience of consent workflows affect user perceptions of the app more broadly. It’s important to consider this while designing both opt-in and opt-out mobile app consent banners.
Choose the right approach for your data privacy needs
Navigating the complexities of opting in vs opting out consent models is essential for maintaining compliance with global privacy laws and respecting user preferences.
Understanding and implementing necessary and user-friendly consent practices, along with adhering to specific regulatory requirements, like those of the GDPR, helps businesses build trust, enhance user engagement, grow via Privacy-Led Marketing, and stay compliant with data privacy requirements.
Tools like server-side tracking and consent management platforms facilitate managing opt-out vs opt-in in a compliant way. They help to ensure privacy-friendly data processing and marketing operations across the tech stack and marketing ecosystem.
Usercentrics CMP further streamlines consent management with geolocation so that users around the world see the right information and consent options in their preferred language. In-depth analytics also help you optimize for higher consent rates faster.
Benefits of server-side tracking include improved control over data, more reliable data quality, stronger privacy control, better site performance, more flexibility in data governance, and more.
Combined in the Usercentrics Privacy-Led Marketing Suite, these tools help to manage consent automatically to boost marketing performance and reduce confusion between opt-in vs opt-in.
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