What is a cookie policy and why does it matter?

November 11

If you have spent any time surfing the web lately (which is probably the case), you have surely seen those little pop-up messages asking you to accept cookies. And no, they are not the chocolate chip kind that goes perfectly with a glass of milk – we are talking about the digital variety.

Now, while these cookies might appear trivial or outright annoying, they play a pretty big role in the Internet’s functioning. So, what is a cookie policy, and why should it concern you? Let’s take a closer look and break it all down into easily digestible pieces.

Cookies: The digital crumbs of the Internet

Cookies are small bits of data stored on your device (be it a computer, tablet, phone, or even a smart fridge) by the websites you view. You can compare them to tiny digital breadcrumbs left behind by sites to help them memorize useful things about your visit.

They can keep you logged in, know what language you prefer, or track which items you have stuffed into your shopping cart. Whatever their use case, the goal of these crumbs, aka cookies, is to make your online experience smoother and more personalized.

But they don’t come in a one-size-fits-all deal. They come in different flavors (sadly, still no chocolate chip here), including session cookies, persistent cookies, and third-party cookies, each with a specific job.

Session cookies only stick around while you are actively browsing and vanish as soon as you close your browser. They are the quick-memory variety that helps websites remember details like your login status or what items are inside your cart.

Persistent cookies hang around for longer, sometimes months, or even years. They remember your preferences for any future visits to the website, like keeping you logged in, remembering your language settings, or that you always shop for sneakers in size 10.

Third-party cookies are the overly inquisitive neighbors of the cookie world. They come from outside the website you are visiting and are often placed by advertisers or social media platforms. As such, they can track your activities across multiple websites.

While these cookies are not inherently good or evil, they do introduce certain privacy concerns as they lean into data collection territory. This is where a cookie policy comes in.

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(Image credit: Getty Images)

A cookie policy is a document that informs users what kind of cookies a website uses, for what purpose, and how users can manage or delete them. Think of it as a restaurant menu (we can even call it a “cookie menu”), but instead of listing appetizers and desserts, it lays out all the different types of cookies that the website is serving.

The cookie policy is there to help you understand what is happening behind the scenes after you click ‘accept’ on that pesky pop-up. It addresses these particular concerns:

For what purpose the cookies are used: Is the site trying to make sure you don’t lose the items you have added to your shopping cart, or is it collecting information to serve you ads that feel a little too on the nose?

What types of cookies are being used: Are the cookies deployed by the website strictly the necessary ones that make the site run smoothly, performance cookies to enhance your experience, or marketing cookies trying to figure out if you need new sneakers so they can sell you some?

How you can manage your cookies: A good cookie policy enables users to accept only certain types of cookies on their device or gives instructions on how to block them entirely – kind of like a “choose your own adventure” for data privacy.

In short, cookie policies are about the website giving you the lowdown on its data-collecting activities. It is a thing of transparency, and knowing what is going on with your personal info has never been more important.

You might be thinking, “Okay, great. But why should I care? Can’t I just browse the web in peace without thinking about cookies?” Fair question. As it happens, cookie policies are kind of a big deal in today’s privacy-conscious world, and for a few good reasons.

Protecting your privacy (and your sanity)

We live in the era of data. Companies treat it as gold, and cookies are one way to mine it. Some cookies are totally harmless and improve your web experience. Others – such as third-party cookies – track your actions across the Internet like a nosy detective.

The information they gather can then be sold to advertisers to show you targeted ads. Ever notice how you look at a pair of shoes online, and suddenly they are stalking you around the World Wide Web? That is third-party cookies working their magic (or rather black magic).

Cookie policies allow you to see who is tracking you and why, and they give you the option to say “no thanks” if you are not comfortable with it. In a way, they empower you to have a say in how much of your data you are willing to share.

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(Image credit: Pixabay (Dooffy))

It is the law

Here is where things get a bit more serious. Cookie policies are not just a courtesy or a nice-to-have feature for websites and advertisers – they are often legally required in a lot of places around the globe.

The European Union’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) have changed how websites collect and handle private data, and cookies fall under that umbrella.

Under these rules, websites have to be upfront about their use of cookies and get your consent before loading anything non-essential on your device. That is why you now see those cookie banners all over the web – they are part of the legal frameworks.

If a website doesn’t have a clear cookie policy or doesn’t bother to ask for your consent, it can face some sizable fines. For businesses, this makes cookie policies not only a matter of playing nice but also a must-have to stay on the right side of the law.

Building trust

Let’s face it, in today’s privacy-first culture, people are more cautious than ever about who gets access to their data. After all, no one wants to feel like their sensitive details are being auctioned off to the highest bidder without their say-so.

Providing a clear and transparent cookie policy can go a long way in building trust with users. In other words, businesses can show that they are not trying to hide anything away and are giving you control over what happens to your information.

It is a bit like a cashier who tells you exactly how your credit card is going to be used during a transaction – trust is built when things are out in the open.

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(Image credit: Shutterstock)

Here is a picture. You are shopping online (again) and have just found a killer deal on a new phone. The site will remember your shipping address, keep your cart updated, and even suggest other items you might want. Nice, right? All of this is powered by – you guessed it – cookies.

You might notice that familiar pop-up: “This website uses cookies. By clicking accept, you agree to our cookie policy.” Behind this simple message is a whole lot going on. The cookie policy tells you what is being tracked – your cart, your behavior, and your preferences.

Additionally, you will often have the option to decline non-essential cookies if you are not a fan of being tracked by third-party advertisers and, subsequently, haunted by items you might have looked at once or twice.

Sure, most of us might not take the time to actually read the whole policy. Nonetheless, it is there for a reason – to keep you informed and give you a choice.

Imagine visiting a site without a cookie policy. You wouldn’t know if your data was being sold to advertisers or kept safe. In the absence of a cookie policy, there is no transparency. Furthermore, websites that don’t comply with cookie regulations are not just risking massive fines – they are also eroding trust.

For consumers, it is like walking into a store where none of the prices are listed – it feels shady, right? In much the same manner, a lack of a cookie policy keeps users in the dark, not knowing what is being tracked or what is being done with their data.

From a business perspective, not having a cookie policy (or worse, having a misleading one) could lead to serious legal trouble. Privacy laws are nowadays pretty strict about how cookies and user data are handled, and violations are punished severely.

How to manage your cookies

We get it – managing cookies can feel like trying to herd cats. But the good news is, that most websites make it pretty easy to select which cookies you allow and which ones you don’t. In fact, most cookie policies include choices like:

Accept all cookies: This means you are okay with all cookies being placed on your device, including those third-party trackers that follow you around the web.
Accept only necessary cookies: This enables you to permit the collection of the bare minimum or only those cookies that are needed to keep the website functioning properly (such as session cookies).
Customize cookie preferences: Through this option, you can pick which types of cookies you want, like performance cookies but blocking advertising cookies.

You can also manage cookies in your browser settings. Taking Google Chrome as an example, its cookie options are under Settings > Privacy and Security. Here, you can block third-party cookies, delete existing cookies, and even manage exceptions for specific websites.

If you are using Firefox, then go to Settings > Privacy & Security > Cookies and Site Data. In this section, you can choose to clear or manage data, define exceptions, block third-party cookies, and/or have cookies cleared when closing the browser.

Edge users will need to open Settings > Cookies and Site permissions. This is where you can manage and delete cookies, decide whether to allow sites to save and read them, block third-party ones, add exceptions, and more.

Finally, to do this on Safari, go to Preferences > Privacy. From here, you can simply block the collection of cookies by websites altogether or opt to block third-party marketing cookies in particular.

Are cookies going extinct?

If you are wondering whether cookies will always be a thing, the answer is… maybe not. Tech companies, especially those heavily involved in web browsers like Google and Apple, are actively working on alternatives.

As a matter of fact, Google has revealed plans to begin transitioning away from third-party cookies in its browser and develop privacy-preserving alternatives through its Privacy Sandbox. Although this differs from the originally announced complete end of support for third-party cookies, users have welcomed it.

According to a new report by Apply Digital, almost two in five (38%) of British consumers plan to reject third-party cookies when Google implements its opt-in model. Another one in five (22%) of the 2,000 interviewed UK residents are still undecided.

Firefox and Safari have already implemented more aggressive measures to block third-party cookies by default. So, we may be moving toward a future where cookies as we know them are a thing of the past. But for now, they are still a big part of how the web works.

Wrapping it all up

Cookies may not be the most exciting aspect of your online experience, but they are essential for how websites function. A cookie policy guarantees that you know what is going on underneath the pretty exterior of a website, allowing you to control how your data is collected and used.

So next time you see that pop-up asking you to accept cookies, take a moment to appreciate the effort. It is not as sweet as a real cookie, but it is important for keeping your online experience secure and transparent. Plus, knowing how to manage your cookies can make a big difference in how much data you are sharing – whether you realize it or not.

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