Although cookie compliance is now a legal requirement, almost one-third of marketing cookies do not require user consent.
Since legislation like GDPR, CCPA, and CPRA came into effect, website owners must abide by data privacy laws. Whether you run a Shopify store or a Magento eBusiness, you must ask for consent if storing website cookies.
But what exactly is cookie compliance? How does it work? And why is it important for your e-commerce site?
Read on to learn how cookies work and the privacy issues they generate. Learn about cookie legislation and how to satisfy 40+ countries’ data laws using one simple service.
What Is a Website Cookie?
A cookie is a simple text file stored on a user’s device when they browse a website.
Cookies were introduced to solve one of the Internet’s disadvantages—each page you visit does not remember your online journey. In other words, there’s no link between you and the websites you view.
Cookies solve that problem by storing a special reference on your computer. The website automatically picks up the cookie, recognizes your details, then welcomes you to the site.
Before we examine the data privacy issues for marketers that cookies create, let’s look at the types of cookies available.
Types of Cookies
A cookie helps to manage a unique visit to your website and multiple visits over time.
One-off visits create “session cookies” or transient cookies because they only last for the length of the user session. These types of files aren’t stored on the visitor’s hard drive and are automatically deleted when they leave the site.
“Persistent cookies” or permanent cookies remain on the drive after the session ends. They can store limited information but usually contain a tracking reference number. That number ties with the website’s database, which holds details like your name and address. Cookies also help to customize your experience by storing your chosen language or color scheme.
How Do Cookies Work?
You don’t need to be a computer programmer to create and use cookies on your e-commerce website.
For example, Shopify sets its own cookies automatically. They’re used to enhance security by checking for failed login attempts and to save multimedia choices.
Google Analytics stores cookies to track a visitor’s journey between websites. This makes goal tracking possible from clicking on a PPC ad right through to checkout.
Third-Party Cookie Issues
Cookies are harmless as they aren’t malware and cannot damage your phone or computer. However, issues arise over visitor tracking on multiple websites.
Third-party cookies are set by someone other than the current website and often track customer behavior across the web. They’re commonly used by online marketing services that want to build a picture of who the user is.
The goal is to display appropriate adverts that align with the user’s site history and search terms.
While it sounds great in theory, in practice, it raises concerns over data privacy in e-commerce. That’s why cookie compliance has become an essential factor when trading online.
What Is Cookie Compliance?
To combat cookie abuse, several regulations have come into effect, including:
- GDPR – General Data Protection Regulation
- ePrivacy Directive – European Union update to GDPR
- CCPA – California Consumer Privacy Act
- CPRA – California Privacy Rights Act
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The EU introduced GDPR in 2016 to help safeguard its citizens’ right to data privacy.
Article 6 outlines how non-EU websites should collect, store, process, and share data. That includes the use of cookies and cookie consent in e-commerce—the act of allowing the site to store private details.
The state of California released two significant data privacy regulations in 2018 and 2020.
CCPA and CPRA ensure that Californians have the right to opt out of the sale of their private data. They also have the right to amend their information at any time.
Complying With GDPR and ePrivacy Directive
Why is GDPR compliance important? A breach can see your company fined up to $20 million or 4% of your worldwide turnover.
The EU has fined over 1,000 companies since GDPR came into force. That includes $877 million for Amazon.com and $255 for WhatsApp for multiple breaches.
Blocking non-US visitors isolates you from a massive potential market. How then do you comply with these regulations in an effective way?
Cookie Compliance Solutions
There are three generally accepted forms of cookie compliance solutions:
- Notification only – also termed a cookie wall and banned by GDPR
- Opt-out – ability to disable cookies
- Opt-in – proactive consent and promoted by GDPR
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In practice, these options appear on the screen for the user to select when they first enter the site. The website should always follow the user’s instructions and only store cookies when they agree to do so.
Although many cookie compliance “solutions” exist, few provide fully itemized privacy concerns.
Only the best include personally identifiable information (PII) and data de-identification. PII itself could save sensitive information like your name, social security number, and DOB. Securing this information from online sharing should be your top priority.
E-Commerce Cookie Compliance
How can you determine if the compliance tool on your Demandware or Magneto site is any good? The answer is to use a cookie compliance checker.
The compliance checker matches current regulations against your current solution. It highlights problem areas on your BigCommerce or Shopify store. Some also check your contact forms and use of data on their “adequate countries” list.
Yet, the best way to ensure your e-commerce site is compliant both now and in the future is to use an all-in-one service. That’s why PieEye offers a complete data privacy solution.
One-Line Solution for Cookie Compliance
GDPR, CCPA, CPRA, and cookie compliance regulations are here to stay. New laws like Brazil’s data protection law mean tighter controls will come into force. Will your cookie management software be able to cope?
PieEye offers a one-line code solution to make your e-commerce site compliant in over 40 countries.
There’s no need to constantly use a cookie compliance checker as we do the heavy lifting for you. Our data privacy tools work across multiple industries and with third-party vendor compliance.
Why not try our demo to make your Shopify, Demandware, Magento, BigCommerce, or WooCommerce site compliant?
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