A computer “cookie” is a bunch of data that is sent from a website and stored on the user’s computer, through the user’s internet browser. Web cookies can prove useful for both the website operator and the website user. They allow website operators to track the activities of visitors to the website, in order to facilitate web operations. Also, they allow website visitors to engage in web activities with more convenience – cookies for instance allow for passwords to be stored on commonly used sites for easy access, or for visitors to keep track of the items in their online shopping cart.
On another hand, the usage of “cookies” raises several concerns from a legal and compliance perspective. An immediate concern that comes to mind for website visitors is whether that privacy rights will be violated through the usage of “cookies”. Likewise, website operators may be concerned that their usage of “cookies” will result in violating of data protection laws. Given the risks involved, it is very important for companies that operate websites for business activities to have a cookie policy, because:
1- It helps obtain consent with respect to personal data
The usage of cookies usually involve the collection personal data. This means that the laws and regulations surrounding the collection and processing of personal data applies to the usage of cookies. Personal data is defined to encompass data that can be used to identify an individual. Having said that, there is a very wide range of data that can potentially fall within the definition of “personal data”. Businesses often collect and process individuals’ personal data for the purposes of their operations. Yet, the data privacy enforcement climate is becoming increasingly strict amidst the emergence of high-profile data breaches.
Besides, data privacy regimes are becoming increasingly consistent as jurisdiction seek to adopt a coordinated approach towards data privacy enforcement. One concept holds true across data privacy regimes worldwide is the requirement for consent to collect and/or process personal data for specified purposes. A cookie policy informs website visitors of the purposes of the usage of cookies, as well as how website visitors may disable cookies on their web browser.
2- It is a requirement for greater accountability to website visitors
Data privacy regimes around the world not only require companies to obtain consent from individuals with respect to their personal data, but also to take measures to maintain accountability to individuals who provide such consent. Measures that companies may be required to take to maintain accountability include acceding to data subjects’ requests on information with respect to the status of their personal data and how their personal data has been used. A cookies policy can facilitate such accountability efforts, through various means, such as providing website visitors with the contacts details of the person whom they are to reach out to, and setting out the procedures for conveying data subjects’ requests.
3- Some jurisdictions need standalone cookie policy
In certain jurisdictions, companies are required to have a standalone cookies policy. For instance, the European Union has enacted laws that require websites to post a standalone cookie policy that is separate from its privacy policy. Given the cross-border nature of commerce, it would be prudent for companies to adhere to the high watermark of standards as far as data privacy compliance is concerned, in order to ensure smooth operations across as many jurisdictions as possible.
4- Harsh consequences of failure to comply with data privacy laws
It is getting increasingly important to comply with data privacy laws and regulations around the world. The proliferation of high-profile data breaches in recent years has resulted in a stricter data privacy enforcement climate across the globe. A failure to comply with data privacy law and regimes could result in hefty penalties, as well as a tarnished reputation. All these could result in huge losses that could potentially cripple your business. A cookie policy is key to ensure compliance with data privacy laws and is a quick win, simply publishing such a simple document on your website could potentially save your company huge amounts of money.
5- Source of reference for your own personnel
While cookie policies may be public facing, they may also serve as an important point of reference for your own personnel who operate your website. Cookie policies may serve as a reminder to your personnel on various cookie-related matters, such as to how cookies should be used. Indeed, this is important as the weakest link in any company’s data compliance ecosystem is human error. Measures can, however, be taken to reduce human error, and a cookie policy is one such measure.
We hope that this article has been helpful to you as a startup wondering whether to have a cookie policy or not for your business. To aid you in create your customized cookie policy that fits your unique business needs, Lexyom offers its support solution. All you need to log on to your Dashboard, create your account with Lexyom and start creating your personalized Cookie Policy on the spot!
Legally Yours,
