Website Cookies & Data Privacy Regulations

Major data privacy regulations impacting website cookies include the EU’s GDPR, which mandates consent for non-essential cookies, and the CCPA, allowing opt-out rights for personal data sale. The US FTC Act and laws like the Computer Fraud and Abuse Act address improper cookie data collection without consent.

Image from prometsource (www.prometsource.com/blog/)

Website Cookies are classified as ‘unique identifiers,’ which is part of personal information. Information collected by cookies can be used to identify users or the devices linked to them.

Cookies are crucial for user identification, session management, and personalized browsing experiences.

Cookies can be classified based on three main factors:

1. Duration:

• Session cookies are temporary and vanish when you close your browser or finish your session.
• Persistent cookies stay on your device until you delete them or until they expire. While they’re ideally limited to a year, they might last longer.

2. Provenance:

• First-party cookies are set by the website you’re visiting.
• Third-party cookies come from sources like advertisers, not the site you’re on.

3. Purpose:

• Strictly necessary cookies are vital for site function and don’t require consent. They enable features like secure logins or shopping carts.
• Preferences cookies, also known as functionality cookies, remember your choices, like language or region.
• Statistics cookies, or performance cookies, gather anonymous data about how you use a site to enhance its functionality.
• Marketing cookies track your online activity for targeted ads, usually from third-party sources, and they’re persistent.”

Let’s understand some of the major data privacy regulations in use of website cookies:

1. EU’s General Data Protection Regulation (GDPR)of 2018:

To comply with the regulations governing cookies under the GDPR and the ePrivacy Directive you must:

• Receive users’ consent before you use any cookies except strictly necessary cookies.
• Provide accurate and specific information about the data each cookie tracks and its purpose in plain language before consent is received.
• Document and store consent received from users.
• Allow users to access your service even if they refuse to allow the use of certain cookies
• Make it as easy for users to withdraw their consent as it was for them to give their consent in the first place.

2. California Consumer Privacy Act (CCPA) of 2018:

• The CCPA doesn’t mandate user consent for gathering personal data. However, if a business collects and sells this data to third parties, users have the right to opt-out of this sale. Consent is necessary for specific situations like handling minors’ information or transferring data.
• Certain US states require disclosure when cookies gather data about a user’s online activities across sites or time. This disclosure should outline how the operator responds to ‘do not track’ signals or similar tools.

3. US’s Federal Trade Commission (FTC) Act of 1914

• The FTC can regulate dark patterns in cookie consent notices under both the unfairness and deceptiveness standard.

In the US, laws like the Computer Fraud and Abuse Act, the Electronic Communications Privacy Act, and state surveillance laws address situations where cookies collect data from a computer without proper consent and share it with the entity placing those cookies.

Non-compliance of cookie-related regulation:

One notable instance of cookie-related regulation non-compliance was seen with Google’s use of cookies to track Safari users’ browsing habits without their consent. Google bypassed Safari’s default privacy settings, allowing it to place third-party cookies on users’ browsers, contrary to their privacy preferences. This action violated regulations and led to legal consequences, resulting in a settlement payment of $22.5 million to the Federal Trade Commission (FTC) in 2012. This incident highlighted the importance of adhering to cookie-related regulations and respecting users’ privacy preferences.

Further Reading and References:

1. Read more about GDPR
2. Read more from FTC on Cookies
3. Read more on CCPA

Disclaimer:

The information provided in this article serves to introduce and raise awareness about the presented topic’s fundamental concepts. It is not intended to serve as legal advice, and readers should not interpret it as such. For specific legal guidance or advice, it is recommended to consult with a qualified professional or legal expert.

Enjoyed the insights shared in this article? Stay updated with my latest content by subscribing to the newsletter — Leadership Edge.