Cookies are an essential component of a website. They improve the users’ experience, and they collect data about a user's behavior on the site. This information can then provide better content, personalized ads, and more. All this may sound great, but it quickly becomes problematic under most data protection laws.
In some jurisdictions, you’ll need to provide users with a means of opting out of cookie usage. In others, they need to opt-in before you can load any non-essential cookies . Moreover, these laws require you to inform your users about what data you collect from them, how you use it, and what rights they have over their data. That’s why a cookie policy is a vital part of compliance. So let’s take a closer look at what cookie policies are, who needs to have one, and more.
In short, a cookie policy is a document containing a list of all the cookies used on a website, along with detailed information about each. It also helps users understand how their data is used, how long the cookies will remain on their device, and more.
A cookie policy isn’t the same as a privacy policy. Your privacy policy includes information about all the data you collect, process, store, or transfer. A cookie policy looks strictly at the cookies that track user data.
Many websites choose to include their cookie policy in their privacy policy. While that’s not wrong, it can be confusing and create problems down the line. For instance, cookie policies are explicitly required by the EU ePrivacy Directive and the GDFR, and while they can be integrated into your privacy policy, it’s safer to have an explicit, separate document you can point to.
A cookie policy is also not the same thing as a cookie banner, which you may have seen on websites as a popup that asks whether you agree to the use of cookies or not. However, these two go hand in hand. The cookie policy gives all the details about what cookies you use, why you use them, and how. The banner is how you collect consent and is often a feature of your.
Many laws, starting with the General Data Protection Regulation (GDPR) also require transparency when it comes to data processing. Plus, users themselves prefer businesses that are transparent about these practices, and they value companies that put an emphasis on data privacy.
What better way to tell your users about the data you process through cookies than a cookie policy?
Does your website use cookies? Then yes, you need a policy.
The GDPR is, to date, the most restrictive data protection law. Talks specifically about online identifiers like cookies, making it clear they’re seen as a means of data collection.
Other laws were inspired by the GDPR. While their requirements might differ slightly—the CPRA, for instance, allows you to load cookies automatically, but users must be able to opt-out—the idea remains the same. A cookie policy is a must for compliance.
Cookies can be an incredibly useful source of actionable information for businesses. They’re not all bad. Some are essential—without them, your website can’t function properly. Strictly necessary cookies are exempted from privacy laws and can load with or without the user’s consent.
The other categories of cookies—analytics, marketing (also known as advertising or targeting), and functionality (also known as personalization)—are more complicated and require informed consent. The cookie policy is there to provide users with information on what these cookies do.
A good place to start is by conducting, which is recommended under many legislations such as the GDPR. This risk assessment audit can help you identify, analyze, and minimize the privacy risks that come with collecting, processing, using, storing, and sharing user data. DPIAs are mandatory under certain conditions, which your use of cookies may or may not meet, but it’s still a good idea to conduct one just to get a sense of the risks posed by collecting/processing consumer information and to identify ways to minimize those risks.
Here are some things your policy should touch on:
The policy should also be available in all the languages in which a service is provided. For instance, if you have a multilingual website, you will need to translate the cookie policy in all those languages.
Cookies aren’t exactly static. Providers may often change the types of cookies they upload or their filenames. Other teams with website access at your organization may implement a solution that uses cookies without letting your compliance or legal team know. Modern business websites are often subject to change frequently, so it can be easy to lose track of what sorts of cookies you’ve deployed.
To keep your policy up to date, you’ll need to perform regular scans of your site to take a catalog of the cookies at use on your site and what functions they perform. CMPs have the benefit of both managing cookie consent on your site as well as scanning and categorizing the cookies you use. After all, you can’t block or permit cookies based on user consent if you don’t know what cookies are on your site and what they’re doing.