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Data privacy is a hot-button issue in today’s digital world. Cookies policies are an ePrivacy directive that requires companies to disclose how they utilize cookies on their websites. These documents may also require legal compliance in some regions, which means you should speak with internet lawyers to draft a well-written agreement.
There are several legal implications associated with a cookies policy. Continue reading to learn everything you need to know.
What is a Cookies Policy?
Cookies policies are legally binding documents that inform website or application users about how your company engages in data tracking and online privacy. A cookie is a digitally encrypted file that is stored on your devices and browsers that are read when you revisit a website. They help companies deliver a better web experience across all devices, mediums, and visits.
Common examples of cookies policy use include:
- Remembering items in a digital shopping cart
- Saving customer language preferences
- Using analytics to track internet market data
- Retargeting ads to social media visitors
- Offering CMS logins or blog commenting capabilities
- Installing tracking pixels from third-party services
Some locations require you to use cookies policies, while others do not. However, some companies are taking a “better safe than sorry” approach when it comes to using website cookies. Managing your legal requirements conservatively can help you prevent an issue from arising in the first place.
Here is an article that goes deeper into Cookies.
Purpose of Cookies Policy
The purpose of a cookie policy is to communicate to consumers regarding how you store cookies on their devices. Some geographic regions and nations require you to explicitly explain your cookies policy, while others are still developing legislation. However, companies may want to utilize cookies policies regardless of legal compliance to foster greater transparency between a website owner and users.
Why You Need A Cookies Policy
You need a cookies policy to let customers know how you use their data. It is a responsible business practice. However, some countries have taken proactive measures to ensure that companies comply with data privacy directives. Their requirements are strict, which means that you should familiarize yourself with the rules before engaging in eCommerce activities beforehand.
Consider the GDPR and CCPA compliance initiatives below.
GDPR Compliance
The General Data Protection Regulation (GDPR) obligates you to provide a cookies policy if you store and use cookies on European Union (EU) audiences. You must let EU visitors know that you are using cookies to track and collect their data, which was a huge component of this 2016 legislation.
The most significant requirement of the GDPR cookies policy includes the use of a cookies banner. You have likely noticed them on nearly every website you visit in recent years. Your cookies banner must feature certain elements to achieve compliance.
Cookies banners compliance requirements include:
- Requirement 1. Link to your cookies policy
- Requirement 2. Option to opt-in or opt-out
- Requirement 3. Acting in good faith to opt customers out
- Requirement 4. How you deploy cookies
- Requirement 5. How you handle third-party data sharing
The cookies banner must be conspicuously located and communicate a crystal clear message. You should not try to hide your cookies banner or make it ambiguous regarding what options the consumer has available. Companies can encourage the use of necessary cookies only by offering people this option as well.
CCPA Compliance
The California Consumer Privacy Law (CCPA) protects website and application users from companies storing cookies on their devices without consent. These cookies often contain tracking scripts and collect identifiable information, also known as unique identifiers. Consumers in California have legal rights when it comes to their personal data.
Consumer rights under the CCPA include:
- Right to opt-out
- Right to be informed
- Right to disclosure
- Right to deletion
- Right to equal services and prices
California does not require that all companies comply with the CCPA. You must follow the guidelines if any of the following conditions are true:
- Condition 1. Gross revenue exceeding $25 million
- Condition 2. Sells to more than 50,000 households
- Condition 3. More than 50 percent of revenues come from selling data
There are differences between the CCPA and GDPR that are worth noting. Let’s take a closer look.
CCPA vs. GDPR
The CCPA approaches ePrivacy directives differently from the GDPR. The GDPR focuses on collecting consent before using the website, whereas the CCPA allows unrestrained collection so as long as consumers have a way to opt-out.
Another difference lies within the scope and depth. California sets limitations on cookies policies as described above, and the GDPR applies them uniformly to all businesses, regardless of their location. Be aware that you do not have to follow these rules if specific criteria are met.
Other State Regulation
As cookies laws and policies gain traction in places like Europe and California, it may take time to see other geographic locations and industries follow suit. Regardless of location, you must remain compliant when serving customers in regions with cookies policy legislation.
There are fines and penalties associated with a violation. For example, a single GDPR can result in fines exceeding $20 million per instance. Avoid making a costly mistake altogether by discussing cookies policy compliance with technology lawyers.
Image via Pexels by luis gomes
What’s Included in a Cookies Policy?
Cookies policies have similar components to other contracts. However, cookies policies contain additional provisions related to the use and storage of cookies on a consumer’s computer, cell phone, or web browser. Your internet lawyers will help you determine if your cookies policies are website-ready and for consumer use.
The elements of a legally compliant cookies policy include:
- Element 1. Cookies acknowledgment statement
- Element 2. Cookies disclosure statement
- Element 3. Intent for use statements
- Element 4. Instructions for disabling cookies
- Element 5. Company contact information
It is wise to draft consumer agreements, such as cookies policies, in simple terms. Complex contract language tends to confuse people, and they may not be able to find the information they need. Keep your cookies policies and other cookies-related documents as simple as possible to prevent potential misunderstandings.
Other Cookies Related Documents
A cookies policy is not the only document that you need to remain ethically and legally compliant online. You may want to work with technology lawyers to review your online presence, website, and backend to help you determine the other cookies-related documents you need.
Other cookies-related documents include:
- Privacy policy
- Terms of use
- Terms of service
- Acceptable use policy
- SaaS agreements
- Licensing agreements
- Data processing agreements
If you need advice regarding what other cookies-related documents your company needs, speak with data privacy lawyers . They ensure that you avoid making legal mistakes with websites when it comes to consumer online privacy.
Cookies Policy vs. Privacy Policy
There is a significant difference between a cookies policy vs. privacy policy. A cookies policy addresses how you use cookies and third-party services. In contrast, a privacy policy addresses how your company stores and uses consumer data. Privacy policies are subject to GDPR and CCPA compliance.
If you need legal advice regarding your cookies policies and other cookie-related documents, consider hiring technology lawyers to offer legal advice.
Writing a Cookies Policy
Online agreements, like Cookies Policies, are best left to experts that understand the way browsers, software, and online marketing works, as well as being familiar with global data privacy laws. Post a project on ContractsCounsel’s marketplace to get bids from vetted technology lawyers that can help.
Meet some of our Cookies Policy Lawyers
Michael C.
Remote
11 Yrs Experience
Licensed in NY, TX
Wake Forest University School of Law
A seasoned senior executive with experience leading the legal and compliance functions of healthcare entities through high-growth periods. I have experience managing voluminous litigation caseloads, while also handling all pre-litigation investigations for employment, healthcare regulatory, and compliance matters. Similarly, I have led multiple M&A teams through purchase and sale processes, including diligence and contract negotiations. Finally, I have extensive contract review experience in all matters, including debt and equity financing, healthcare payor contracting, vendor and employment agreements, as well as service and procurement agreements.
March 15, 2022
Mark D.
Dallas/Houston Texas
27 Yrs Experience
Licensed in CO, TX
Thomas M Cooley Law School
Partnering with business clients to keep their greatest asset - their employees - from becoming their biggest liability. Mark accomplishes this by working with in-house counsel and human resource professionals of several Fortune 50 companies, as well as many smaller public and privately held profit and not for profit organizations, to provide advice and counsel on the day to day employment and workforce practice issues encountered by those organizations. For over fifteen years Mark has been Board Certified in Labor and Employment Law by the Texas Board of Legal Specialization. He is licensed and practices in both Texas and Colorado and has focused his practice for the last 20 plus years on defending companies in employment and labor related matters. During this time Mark has had extensive experience in handling and responding to a wide range of local, state and federal employment issues that impact the management and operations of businesses in a wide range of industries. Mark's experience includes appearances before state and federal agencies and regulatory boards, litigation in both state and federal courts, defense of class actions and appearances before courts of appeal. While Mark regularly handles matters in litigation, he has a high regard for handling every issue with the best interest of the client’s business. Mark is a published author and regular speaks on labor, employment and workplace practice topics. Whether it be an investigation by the Occupational Safety and Health Administration (OSHA), the Wage & Hour division of the U.S. Department of Labor, or other state agency; an Equal Employment Opportunity Commission (EEOC) or state agency charge claiming a violation of local, state or federal employment or labor laws; or the need for direction on a hiring, termination or business operational issue involving employees, Mark has extensive experience in handling these and many other employment and labor issues.
Rebecca R.
St. Petersburg, FL/Nashville, TN
21 Yrs Experience
Licensed in TN
University of Tennessee College of Law
An experienced commercial contracts attorney with sales, leasing, NDA, SEC compliance, corporate governance, commercial real estate, and employment experience. Also well versed in internal and external policy document and manual creation.
March 23, 2022
Joann H.
Miami
22 Yrs Experience
Licensed in FL, NY
University of Buffalo School of Law; SUNY at Buffalo School of Law
I practiced law for the past 22 years in Immigration, Bankruptcy, Foreclosure, Civil Litigation, and Estate Planning. I am interested in downsizing to a more workable schedule to allow the pursuit of other interests.
Gregory F.
Atlanta, Georgia
24 Yrs Experience
Licensed in GA, NY
University of Pennsylvania
Greg Fidlon has been practicing exclusively in employment law since 1998. He represents and advises clients in all aspects of the employment relationship. In addition to his litigation work, Greg regularly negotiates and drafts corporate policy handbooks, employment contracts, separation agreements and restrictive covenants. He also develops and presents training programs and has spoken and written extensively on labor and employment law topics.
Sunnita B.
Atlanta
6 Yrs Experience
Licensed in GA
Atlanta John Marshall
Experienced sports and entertainment attorney. I specialize in contracts, business formation, licensing, wage disputes, negotiations, and intellectual property.
March 25, 2022
Pankaj R.
Los Angeles/Inland Empire
13 Yrs Experience
Licensed in AZ, CA
University of Arizona Rogers College of Law
I advise clients in the areas of business, trademarks, real estate, employment, and finance. My overarching goals are to unite creative people and companies to assist them in making sound legal and business decisions. I have been fortunate enough to build a fast-growing, 21st-century law firm with an amazing staff by my side. Our focus is not just on providing invaluable legal insight but creating a better all-around client experience. We provide unique subscription pricing and flat-fee options for our clients, providing billing transparency and enhanced value to all of our wonderful clients. Focus areas: contract drafting, negotiations, research, trademarks international law, entertainment, business development, entity choice; business: manager, team builder, leader, motivator. Speaking Engagements: National Business Institute (NBI) - "Business Contracts 101"
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