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What’s the first thing that comes to mind when you hear the word ‘cookie’?

It’s not vanilla or choco chip cookies. In today’s tech world, cookies serve a different purpose.

On every website that you visit, you either accept or reject cookies via a cookie notice. While the sole purpose of cookies is to help companies understand what other sites a visitor is visiting, companies require visitors’ consent to track visitor data. That is because of cookie policies enforced by the government.

For businesses having a website that serves customers in the European Union, ‘Cookie policy or law’ might send chills down your spine.

If you have no idea about cookie policy, you’re probably not the only one. Understanding everything about it might help you stay compliant with legal regulations. Educating yourself about these laws and policies is essential to avoid legal fines.

What is cookie law?

Cookie laws are ePrivacy directives that require companies to disclose how they utilize cookies on their websites. According to this law, companies can use cookies and trackers for which visitors have given consent.

One part of this law states that websites cannot store any visitor’s information without getting their consent. Companies that overlook the importance of cookie policies might face enforcement action from different legal authorities.

While staying in compliance is challenging, the fines you might incur because of non-compliance far outweigh the challenges you face.

According to research, companies might lose an average of $14 million per year in non-compliance.

The primary purpose of cookie policy is conveying website visitors how they store cookies on devices. To ensure companies adhere to these laws, the European Union EU passed the ePrivacy directive or cookie law to regulate the placement of digital files on digital devices.

These directives require companies to provide easily understandable information regarding cookie processing.

Why is cookie law important?

The cookie law is essential because of the following reasons:

  • Allow users to opt out of cookies
  • Give information about cookies and their purpose when a visitor visits a website
  • Make cookie opt-out and opt-in options easily available
  • Provide conditional access to websites upon user consent
  • Get user consent to store cookies on their devices

How to comply with cookie law?

Here are a few ways using which companies can comply with cookie laws:

1. Identify cookies

Before deciding which type of cookie to regulate, know the type of cookie your website uses. Understanding which cookie requires consent to move forward and which requires blocking is essential for managing them.

You can perform a manual check or use a free cookie scanner. This helps ensure compliance with the laws.

2. Update your cookie policy

A privacy policy tells users that the site discloses, uses, and stores their information. A cookie or privacy policy ensures that users know what type of personal data the user collects and from and when.

It makes users aware of how they can manage cookies and how customers can exercise their data rights, like the right to delete, access, or correct their data.

Usually, the data privacy rules and policy indicate where the website will probably share the data for its services and how users can contact the site administration to register complaints about any potential data breach.