Published On: Oct 6, 2023 • Last Updated: Oct 6, 2023 • 6.5 min read •
What is a Website Cookie?
Cookies, also known as internet cookies, HTTP cookies or browser cookies are small blocks of data. These blocks are created and stored by a web server when you visit a particular website or webpage. These web cookies store information in the user’s web browser. This facilitates creating ‘customized shopping experiences’ for the business owners easier. Besides, it is a small block of information, so it is not necessary that one website will only store one cookie. It also depends on the different types of cookies that the website collects. The cookies can also be collected for the third party advertisements, payment gateways, any associated software, etc.
It allows them to enhance user experience;
Improves the functioning of the website; and
Collects data to create targeted ads, and
Makes shopping more fun for the customers.
Interesting Facts: Cookies are small text files usually containing the details and unique ID for customers.
Types of cookies
Different types of cookies serve different purposes. For example, marketing cookies help in getting targeted ads. Whereas, functional cookies help in increasing the functionality of a website. So, you need to mention all the different types of cookies that you’re using. This helps the customers have a better idea of what they are getting into.
Interesting Fact: Analytical cookies are used to facilitate Data Analytics on a website.
Purpose of using cookie
This is a very important aspect of the cookies policies for websites. You need to obtain the consent of users before using cookies. This is a mandatory practice under the GDPR norms. Besides, even under the new Digital Personal Data Protection Act, 2023 it is mandatory to obtain consent of data subjects for collection of information for cookies, etc.
The cookies should be easily manageable. Hence, you also need to define the consumers how they can manage the cookies from their settings. The consumers should be able to access, modify and delete cookies per their preferences.
Session cookies are the cookies that get deleted post each session on the website. However, there are persistent cookies also – which stays stored for longer durations. Hence, it is important that your policy mentions the duration for which a cookie stays saved on the user’s browser or device.
It is not hidden that most users don’t even read the e-policies for online businesses. However, there are many ways in which these policies can be important for the growth of the business. Here are the reasons why cookie policies for website are important:
Obtaining explicit user consent can protect the business from unnecessary third party liabilities or negligence claims.
The main purpose behind the collection of cookies is to make the user’s experience more custom to their needs. Further, there are certain cookies that save the login credential information, etc. this allows the user to smoothly continue with their shopping experience without having to login again and again.
Analytics and Marketing
Majority of cookies being used these days are marketing or analytics cookies. These cookies track the users keywords, their preferences, and then help in creating a bunch of targeted Ads. This is a highly preferred marketing tactic these days. Besides, having this data will allow you to make well informed business decisions.
For all stakeholders, including your clients, investors and vendors, it is very important that you stay legally compliant. Hence, when you are taking such measures and keeping your policies well in accordance with the prevailing laws, it helps in building your credibility.
Ideally, yes. All online business owners should get cookie policies for their websites. Even if it might not be legally required in all the jurisdictions yet. However, it builds trust, shows the zeal of the business owner towards the legal regulations. Besides, today keeping data safe online is becoming increasingly important with each passing day.
Frequently Asked Questions
As a writer, Diksha aims to make complex legal subjects easier to comprehend for all. As a Lawyer, she assists startups with their legal and IPR drafting requirements. To understand and further spread awareness about the startup ecosystem is her motto.