Have you noticed that these days, just about any website you access notifies you of the existence of “cookies?” Sometimes you’re just informed, but often you are given a choice to select the cookies you want to allow. You may have wondered about the impetus for the change and how it impacts you. This two-part article will answer that question and discuss options you have that you may not have known in terms of managing those cookies.
Cookie consent notifications have become an almost ubiquitous part of our online experience. Whether browsing an online store, reading a news article, or simply visiting your favorite blog, you are presented with a cookie banner asking you to make choices about the kind of personal data the website wants to collect. This is largely the result of changes initiated and enforced regarding European data privacy regulations, now known as the General Data Protection Regulation (GDPR) or the “Cookie Law.”
The Origin of Cookies and Their Purpose
So, what are cookies, why are they used, and why do we need to give consent? Cookies originated as a solution to add “memory” to websites. They are small text files that are created via code that are embedded in websites and stored on your device by your browser. Invented in 1994 by Lou Montulli, a Netscape developer, cookies were designed to make web browsing more efficient by providing a way for websites to “remember” you as you navigate between different pages. The idea was to help websites remember your preferences and keep track of interactions, such as when adding items to an online shopping cart. This innovation was essential to the growth of dynamic web services and
e-commerce platforms.
Since then, cookies have become a powerful tool used by website owners for a wide variety of purposes. Cookies come in several different “flavors,” categorized by their type. These include:
- Session Cookies: Temporary cookies that are deleted once the user closes their browser.
- Persistent Cookies: Stored on the user’s device for a specified duration, even after the browser is closed.
- First-party Cookies: Created by the website the user is visiting directly.
- Third-party Cookies: Created by other domains (websites), often for advertising or tracking purposes.
Cookies can also be divided by their specific purpose, such as essential cookies, performance cookies, functional cookies, social media cookies, and advertising/targeting cookies. Essential cookies are crucial for the functioning of a website, while performance cookies help website owners understand how users interact with their content. Functional cookies remember user preferences, social media cookies enable social sharing and tracking, and advertising cookies are used for delivering personalized ads. Some examples of the ways in which these cookies are used include things like:
Authentication – keeping users logged in and remembering login credentials.
Personalization – remembering language preferences, website preferences, and user-specific content.
Online shopping – shopping cart management, order tracking, product recommendations.
Analytics – user behavior tracking, site performance monitoring, A/B testing.
Advertising – targeted advertisements, campaign tracking.
Why Cookies Became Regulated
While cookies provide convenience and customization for web users, they also present privacy concerns. Cookies, especially third-party ones, have been extensively used for tracking your behavior across multiple websites, and enabling advertising networks to create highly detailed profiles of your Internet use and behaviors. This level of data collection has led to concerns about the transparency of data use and the erosion of personal privacy.
In response to these concerns, the European Union (EU) enacted the E-Privacy Directive, also known as the Cookie Law, in the early 2000s. The directive was later amended to specify that websites must obtain explicit user consent before placing cookies on their devices and enforced in 2011, marking the beginning of cookie consent banners as we know them today. Users were now given clear notifications about cookie usage and were provided with options to opt in or opt out. Then the General Data Protection Regulation (GDPR), which came into force in 2018, truly set the bar for user consent, how cookies are used, the kind of cookies users agree to allow, and the ability to opt in/out.
The Benefit to Us
Although the GDPR was passed in the EU, its impact extends far beyond European borders, even affecting US-based websites. The GDPR applies to any entity that processes the personal data of individuals residing in the EU, regardless of where that entity is based. Since many US websites serve international audiences, including EU users, they must comply with GDPR requirements to avoid significant fines. They therefore have opted to implement GDPR-compliant policies globally to streamline their operations and demonstrate a commitment to data privacy. What a benefit to us!
Courtesy, Karen Clay