Implementation and Regulation of Third-Party Cookies
Third-party cookies are those generated and managed by domains other than the website being visited by the user. Their main function is to track users’ online activities across multiple websites, enabling the creation of detailed profiles used for targeted advertising. However, this practice has raised significant privacy concerns, leading to increasingly strict regulations.
Analysis of the Current Regulations on Third-Party Cookies
In the European Union, the General Data Protection Regulation (GDPR) and the ePrivacy Directive govern the use of third-party cookies. According to these regulations, third-party cookies require the user’s explicit consent before being stored on their device. This consent must be freely given, specific, informed, and revocable. Additionally, users must be informed of who is installing the cookies (whether it is the website or a third party), the purpose for which the data collected will be used, and how they can manage their preferences.
On the other hand, regulations in the United States have also begun to tighten, particularly at the state level. The California Consumer Privacy Act (CCPA) requires businesses to provide users with the option to opt out of the sale of their personal data, which includes information collected through third-party cookies. While not as strict as the GDPR in terms of the need for prior consent, the CCPA represents a move towards greater regulation of online tracking.
How to Properly Implement Third-Party Cookies on a Website
To comply with current regulations, companies using third-party cookies must follow a series of key steps to ensure transparency and protect user privacy.
- Third-Party Cookie Audit: the first step is to identify all third-party cookies used on the website. This includes those implemented through advertising, analytics, or social media services. It is crucial to know who the third parties are, what data they collect, and for what purpose.
- Informed and Specific Consent: unlike technical cookies, third-party cookies require the user’s consent. To obtain it, a cookie notice or banner must be implemented, clearly informing users about the use of these cookies. The banner should offer the option to accept or reject third-party cookies, and it is important that they are not installed until the user has given their consent.
- Granular Preference Management: in addition to allowing users to accept or reject all third-party cookies, it is recommended to offer them the option to customize their preferences. This means users should be able to select which types of third-party cookies (e.g., advertising or analytics cookies) they wish to accept.
- Withdrawal and Consent Management: the website must allow users to change their cookie preferences at any time. This can be done through a visible link on the website that directs them to a cookie management page or tool.
- Regular Review and Update: as technology and regulations constantly evolve, it is essential to periodically review the third-party cookies implemented on the website. This ensures that any changes in third-party privacy policies or applicable regulations are properly reflected in cookie management practices.
Alternatives to Third-Party Cookies
As the use of third-party cookies becomes increasingly restricted, companies have begun to explore alternatives to maintain the effectiveness of their marketing and analytics strategies without compromising user privacy.
- Enhanced First-Party Cookies: one of the most direct alternatives is to enhance the use of first-party cookies, which are managed by the website itself and not by third parties. Although they do not provide the same cross-site tracking capabilities, these cookies can be used to personalize the user experience within the site itself, collecting data in a more ethical and transparent manner.
- First-Party Identifiers: instead of relying on third-party cookies, many companies are developing unique identifiers based on their own data. These identifiers allow for user tracking within the company’s ecosystem without relying on intermediaries.
- Contextual Targeting: a popular alternative is contextual targeting, which focuses on displaying ads based on the content of the webpage the user is visiting, rather than their past behavior. This eliminates the need to track users across websites and is considered a more privacy-friendly option.
- Differential Privacy Models: another emerging option is the use of differential privacy techniques, which add “noise” to the collected data so that individuals cannot be identified, while still allowing useful information to be obtained for aggregate-level analysis. This allows companies to conduct market research and behavior analysis without compromising individual privacy.
In summary, the landscape of third-party cookies is rapidly changing, driven by increasing privacy concerns and new regulations. Companies must adapt to these new realities by implementing practices that comply with regulations and exploring alternatives that allow for effective marketing without sacrificing user privacy.
At Letslaw, we specialize in privacy and e-commerce, and we can help your company efficiently and effectively comply with cookie regulations.
Aberto Malo ha desarrollado su carrera profesional en las áreas de Propiedad Intelectual, Protección de Datos y Nuevas Tecnologías. También presta asesoramiento jurídico, tanto a nivel nacional como internacional, en el ámbito del comercio electrónico, publicidad, esports, competencia desleal, contratación de software, consumidores y usuarios y litigación procesal.
