Mandatory User Accounts: The EDPB Challenges Common E-commerce Practices
For years, the "Create an Account" button has been a staple of the online shopping experience. From a marketing perspective, it's a goldmine for data collection and customer retention. From a legal perspective, however, it is increasingly becoming a liability.
The European Data Protection Board (EDPB) has issued Recommendations 2/2025 on the legal basis for requiring the creation of user accounts on e-commerce websites (adopted in December 2025 and put out for public consultation). They are non-binding, but they directly challenge the legality of mandatory user registration. This insight explores why the "business as usual" approach to e-commerce is no longer defensible under the GDPR.
The "Necessity" Test: Article 6(1)(b)
The most common legal basis for processing data in e-commerce is that it is "necessary for the performance of a contract." Retailers argue that they need an account to process orders, track shipping, and handle returns.
The EDPB's counter-argument is surgical: Is the account strictly necessary to sell the product? If a customer can provide their name, address, and payment info to receive a package without creating a permanent password-protected profile, then the "account" is an added feature, not a contractual necessity. Therefore, Article 6(1)(b) cannot be used to justify forced registration.
The Consent Trap: Is it Freely Given?
If the data collection isn't "necessary" for the contract, the only other viable path is Consent. But under the GDPR, consent must be:
- Specific: Tied to a clear purpose.
- Informed: Clear about what is happening with the data.
- Freely Given: This is where most e-commerce sites fail.
If a user must create an account to complete their purchase, the consent is "coupled" with the service. The EDPB views this as a lack of choice. If you don't offer a Guest Checkout option, you are effectively coercing the user into a data-sharing relationship they may not want.
Joint Controllership and Marketing Pixels
The risk is compounded when these mandatory accounts are linked to tracking pixels (like Meta or Google). When a user logs in, their behavior is often tracked across the web. Recent rulings have clarified that the website owner and the ad-tech provider are often Joint Controllers.
By forcing an account, you are essentially forcing the user into a massive tracking ecosystem, increasing your legal exposure if that data is misused or leaked.
Strategic Roadmap for Retailers
To align with the EDPB's direction, digital teams should pivot toward a "Privacy-First" conversion funnel:
- Implement Guest Checkout as the Primary Flow: Don't hide it. Make it the path of least resistance.
- Incentivize, Don't Mandate: Offer account creation after the purchase is complete. "Save your details for 10% off your next order" is valid; "Create an account or you can't buy this" is not.
- Audit Data Retention: If a user uses guest checkout, ensure their data is deleted or anonymized once the warranty/return period expires. Do not keep it in a "shadow profile" for marketing.
Conclusion
The EDPB's stance signals the end of mandatory accounts as a standard practice. In a landscape where privacy is becoming a competitive advantage, retailers who respect user choice and minimize data collection will not only avoid regulatory scrutiny but also win the trust of the modern, privacy-conscious consumer.
This article is general information from Data Protection Matters, not legal advice. We aim to be accurate, but it may contain errors or omissions and we give no warranty as to its accuracy or completeness. It reflects the position at the time of writing; privacy laws change and vary by jurisdiction. Verify against official sources, seek advice for your own situation, and rely on it at your own risk.
