What is a cookie policy?

Across almost every website on the internet, cookies play an integral role in delivering enhanced user experience, personalizing content, and enabling seamless website functionality. Not only this, but website visitors have the autonomy to decide their own cookie preferences by managing their cookie consent.

Understanding and managing cookies has become more important than ever – especially with increased user apprehensions over data privacy and protection. This is where a cookie policy comes into play.

Informed by regulations such as the GDPR, a well-crafted cookie policy not only ensures all relevant data privacy compliance is met, but that a level of trust is established between you and your website visitors by providing transparency on cookie usage.

So, what are the core components of a cookie policy, and, more importantly, why do you need to include one within your website?

Defining a cookie policy

When accessing a website from a browser, a user will usually be met with an interactive cookie banner or cookie widget that allows them to either accept or deny cookie usage, or even submit a more granular cookie consent preference. This selection will then determine how user data is collected and used by the website and any third parties.

As mandated by data privacy regulations, such as the ePrivacy Directive, websites must ensure that clear and comprehensive information about their use and handling of cookies is readily available. This information should be accessible to consumers through a dedicated cookie policy document.

However, before considering the key components of a cookie policy, it is crucial to understand why a cookie policy is so important in communicating information about website cookies and their purposes.

Why do you need a cookie policy?

Ensuring compliance

Data privacy rules and regulations emphasize the importance of transparency and informed user consent regarding cookie usage. By not providing a clear and accessible cookie policy within their website, organizations can face legal ramifications for not following global data privacy laws and regulations. Non-compliance with laws such as the GDPR can lead to hefty consequences, including financial penalties, and so it is imperative that organizations ensure complete compliance with the requirements of cookie laws and regulation.

There are several governing regulations that affect how organizations collect and use cookies. These include:

• GDPR: The EU’s General Data Protection Regulation stresses the need for websites to first obtain explicit and informed cookie consent from users before storing or accessing cookies on their devices. Therefore, under the GDPR, a cookie policy is an essential tool for ensuring that users are informed about how their personal data is collected, and why cookies are being used on a website.
• CCPA: The California Consumer Privacy Act places emphasis on the disclosure of cookie usage within a website, as well as the right of the consumer to know what personal data is being collected about them and how. In light of this , a comprehensive cookie policy is crucial for keeping users informed and ensuring compliance with these regulations.
• ePrivacy Directive: Also known as the EU Cookie Law, the ePrivacy Directive states that users must be granted comprehensive information as to how their personal data is collected, as well as the ability to refuse and withdraw consent for the use of cookies. Thus, a level of transparency between organization and consumer is required to comply with this cookie law, making a cookie policy essential for informing users about data collection practices and facilitating their ability to manage cookie preferences.

To aid in ensuring total compliance, organizations may also look to implement a Consent and Preference Management solution into their cookie strategy.

Building trust through transparency

A cookie policy not only ensures compliance with governing cookie laws and regulations, but also builds trust with website visitors through transparency.

In the current digitally refined world, consumers are, more often than not, faced with concerns when it comes to the privacy of their own personal data online. In fact, consumers may feel an increased need to understand how their personal data is being handled by different websites, especially concerning the workings of cookies. This is where a cookie policy comes into play.

By providing users with information about cookies, they can therefore begin to understand the types of cookies being used by a website, how these cookies work to collect personal information, and why cookies exist within the website they are visiting. As a result, such transparency from organizations could lead to increased cookie consent rates by empowering users to make informed decisions about their privacy preferences.

Enhanced user experience and engagement

Certain types of cookies work to deliver a more personalized user experience for website visitors. For example, third party cookies account for previous user behaviors, and work to deliver personalized content back to the user based on these. Additionally, persistent cookies work to remember and store information about a user between subsequent visits to a website, such as login information.

Understanding how specific cookies enhance user experience can encourage website visitors to consent to cookies. This highlights the need for a clear, comprehensive cookie policy that provides accessible information on cookie usage within a website.

What does a cookie policy include?

It’s highly unlikely that every single website on the internet will have the same cookie policy. Needless to say, it remains essential for a website to provide a clear, accessible cookie policy that outlines how personal data is handled. Depending on the types of cookies used by a website, a cookie policy may include information on the following:

Definition of cookies

This section should provide a brief explanation as to what cookies are in the context of web browsing. Cookies are oftentimes referred to as small files of information that aid in informing a website about its visitors.

Types of cookies used

Next, a cookie policy may include information on the types of cookies used within a particular website, including first-party cookies (otherwise known as strictly necessary or essential cookies), third-party cookies, session cookies, temporary cookies, and persistent cookies.

Purpose of cookies

As well as listing the types of cookies used, a cookie policy should include the purpose of each individual cookie type. For example, if certain cookies are collected in order to utilize Google Analytics, then these should be outlined within this section of the cookie policy. This ensures that users remain informed on the ways in which their personal data is handled when accessing a website. Additionally, this empowers users to make customized decisions about their cookie preferences based on which cookies they wish to allow or block.

Managing cookie consent

A cookie policy should also be explicit in informing users of their rights to manage their own cookie consent and privacy preferences. This section should therefore include information as to how users can manage their cookie consent preferences, and also how they can request the deletion of their personal data.

Changes to the policy

This section should inform users of how the cookie policy may be updated to reflect changes to cookie usage or legal requirements, as set out by data privacy laws and regulations, and how users will be notified of such changes.

Contact details for user enquiries

Lastly, a cookie policy should include reference to relevant contact details of the organization should a user wish to reach out with questions regarding the cookie policy or cookie usage in general.

Cookie policy examples

Google

You can find Google’s cookie policy here, which outlines the following:

• How Google uses cookies to collect information from its users
• Types of cookies and similar technologies used by Google for the following purposes:
  • Functionality
  • Security
  • Analytics
  • Advertising
  • Personalization
• How users can manage cookies within their browser settings
• How users can manage cookies in mobile apps and devices

Google’s cookie policy also includes links that allow users to update or amend their cookie preferences, showing a commitment to empowering users to make informed decisions about how their personal data is shared.

Amazon

Similarly, Amazon’s cookie policy provides information to consumers on how the website collects and stores cookies. The cookie policy includes:

• Information on the types and purposes of the following cookies:
  • Operational cookies
  • Advertising cookies
• How users can manage their cookie preferences

Amazon also provides a preference page for users wishing to update their third-party cookie preferences, which again highlights a commitment to safeguarding user privacy.

Why is a cookie policy important?

Through offering a clear and concise outline of a website’s cookie processes, users are empowered to make informed decisions about how they wish to interact with the website they are visiting. Whether this means through accepting only necessary cookies for website functionality, or agreeing to marketing cookies, for example, to be served a more personalized user experience, consumers are in full control of their cookie preferences.

As discussed earlier, a cookie policy on a website is crucial for complying with data privacy regulations and cookie laws. Adhering to GDPR and other privacy laws not only ensures legal compliance but also demonstrates a commitment to the protection of user data and information.

All in all, a cookie policy is an essential component that organizations should aim to prioritize within their websites, and is not something to be overlooked.