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Cookie Policy And Compliance Factors

Cookie Policy And Compliance Factors

Data privacy has become a flashpoint in the present era. Cookie policy is sort of an e-directive which concludes a statement of purpose explaining the use of cookies. It basically tells how cookies are being used on the website.  Now cookie policies may vary in their format and nature in some regions of the world because they are set according to regional laws. For example, the cookie policy in Europe may be slightly different than that in Germany. As it is directly concerned with data privacy, it has legal implications as well. Let us dive in to know more!

What is a Cookie Policy? 

It is a legal document that enlists the purposes and descriptions of how your website tracks and collects data via cookies. A cookie is a small piece of data that is stored on your device when you visit the website and its purpose is to track the information and data of the visitor. It has to be a compliant process because you cannot track and collect someone’s data without their consent. This is what we call cookie consent.

Have a look at some examples to understand it better! 

  • When you select items in an online shopping mart, and it is added in your cart
  • When you select a specific language and the site remembers the preference you selected
  • Market data information by using analytic cookies

Why is it important to have a Cookie policy?

What is your reaction if someone asks for your personal details but does not tell you why they need it? Obviously, you won’t tell them at all. The same goes for the cookies. If your data is stored with consent, it is your legal right to know what is the purpose of this data collection.

Cookie policy aims to acknowledge customers about their data, where it is going, and why the company collects it. This is why data privacy directives are stringent about this. The laws are strict and require you to be compliant before getting into any eCommerce activities.

What are the compliance factors to keep in mind? 

As above, compliance with data privacy laws is imperative. The factors are as follows:

1. Cookie Consent Banner requirements in respect to cookie policy

  • Links with your cookie policy

Cookie consent banner highly relates to the compliance points followed by the cookie policy. It gives a clear choice to the client to either accept or reject the cookies. This consent-taking banner is what makes compliance easier.

  • Options for opt-in and opt-out:

The opt-in option allows users to take affirmative action about receiving any marketing emails or others. If the user decides to go with the opt-out option that means he is given the authority to opt-out of default emails. The same goes with the cookie consent banner.

  • What is the process to deploy cookies:

The process relies on the effective management of cookies. This is done by the use of consent management platforms where multiple features allow the proper management of vendors and cookies.

  • How do you manage third-party cookies?

This point also relates to the cookie consent banner requirements. Most of the time people want to select or categories the cookies which are collecting data. So how you manage the third-party cookies also concerns the cookie policy and cookie consent banner as well.

Enable cookie consent banner With Seer CMP

2. Consumer Rights

This is the most important factor to keep in mind. As governments introduce more data privacy laws such as CCPA, consumers have the legal right to know about their data. Especially, about how it is being stored and used. They have the right to get the information and you must provide it.

3. Laws and Regulations

GDPR (General Data Protection Regulation) requires organizations to ensure the consent of the clients and use a cookie policy that defines the usage of cookies clearly.

Legal Swirls

If you do not comply with the data privacy laws and regulations, you will have to face legal consequences. You will have to pay hefty fines and penalties. Therefore, one little moment of negligence can cost you hundreds of dollars.

Components of Cookie Policy 

  • Acknowledgment statement about cookies being used
  • Disclosure statement of cookies
  • Intent
  • Instructions to disable cookies
  • Contact information of the organization

Are Cookie Policy and Privacy Policy the same thing? 

No they are not the same. In fact, there is a prominent difference between both the terms. A cookie policy addresses how you use cookies/third-party services. However, a privacy policy explains how your company is using consumer data. Privacy policies are subject to GDPR and CCPA (Privacy laws).

Cookie Policy 

Privacy Policy 

Covers concerns with cookies and third-party services Concerns with the company’s control over consumer data
Enlists the purposes of cookie usage Enlists the purpose of the company
Cookies are categorized and information collected is acknowledged Consumer data is under consideration where companies are required to ensure it is private.
Falls under legal parameters. Falls under data privacy laws such as CCPA and GDPR
Tells you which cookies are active on your site. Tells you how a company is collecting and processing consumer data.
It tells you where your data is being sent. It tells you how this data is being used.

Conclusion

In conclusion, data privacy is a flashpoint and anyone who wishes to build their site now needs to know that laws and regulations are stringent. Consumer data is as important as the profit buckets. Cookie policy tells about which cookies are on site, how are they capturing data and where is it sending the data.

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