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Trust and Compliance in an Evolving Cookie Landscape
Published on September 15, 2021 AUTHOR - Privacy Research Team
The cookie landscape is evolving in light of emerging global privacy regulations and consumer awareness on data privacy. The transformation in the advertising world continues to advance to this day as tech giants like Google plan to phase out third-party cookies altogether by 2023.
The removal of third-party cookies and the introduction of more complex user segmentation and bidding algorithms have pushed global companies to explore new ways to engage users with or without personal data identifiers and businesses have started investing their time and efforts to prepare for the post third-party cookie world.
Firefox and Safari have already blocked third-party cookies on their respective browsers. But Google is taking the game to a whole new level by introducing more sophisticated mechanisms and algorithms that it claims to be privacy-compliant: FLoC and FLEDGE.
Federated Learning of Cohorts (FLoC) is going to replace the use of third-party cookies by allowing website publishers to inform advertisers about the interests of website users. This involves clustering large groups of website users with similar interests to aggregated ad-target cohorts created on their interest-based attributes.
First Locally-Executed Decision over Groups Experiment (FLEDGE) enables marketers to create and deploy their own audiences without the use of third-party cookies via remarketing algorithms. It allows site owners, brands, or third-party platforms to assign site users to cohorts they define based on the user’s actions on the site. Just like FloC, targeting users is cohort-based but assigning cohorts is dependent on user’s actions.
Both FLoC and FLEDGE are part of the technologies that Google is using in its testing environment of Google Privacy Sandbox.
The change in the cookie landscape will not just impact the marketing industry globally. This will also affect privacy teams globally as they tackle meeting consent compliance.
How Consumer Trust Fits in This Crossroad of Consent, Trust, Privacy, And Ethics
Even with alternative solutions to the use of third-party cookies, the following questions remain:
- Consent requirement in the post-cookie removal era
- Consumer trust assessment
- Impact on consumer ethics
How Consent Requirement Fits in an Evolving Cookie Landscape
In the post third-party cookie era, companies and brands are going to explore other more viable options that may or may not contain personal data/personally identifiable information (PII), such as name, email address, IP address, etc.
Different types of alternatives to 3PC are being suggested, implemented, and experimented to see which option allows brands and publishers to gather targeted data on users, all the while attempting to ensure compliance with privacy regulations such as the GDPR.
As per most global privacy laws like the GDPR, consent is required for the use of cookies and similar tracking technologies that have the ability to identify individuals. This does not just include third-party cookies but also first-party cookies and other identity solutions. Therefore, alternatives like data clean rooms where users are placed in aggregated groups may still require compliance with privacy laws as both parties (advertisers and publishers) come together with users’ personal data on an intermediary platform. Even if a company opts for user graphs where they require the collection of users’ demographic data for targeted ads, compliance with consent requirements is considered to be essential.
Also, the use of first-party data for non-essential purposes is subject to regulatory compliance. This is because even with first-party data, there remains a possibility of identifying or tracking individuals and building their profiles.
Regardless of what 3PC alternative brands and publishers intend to choose, if they are collecting PII data then compliance to privacy regulations like the GDPR becomes obligatory which ultimately calls for consent. This is because the definition of personal data refers to the possibility of identifying an individual and if the possibility remains, consent would be considered essential. In addition, the use of any kind of PII will be subject to other legal requirements such as data minimization that requires organizations to collect the data only which is adequate, relevant, and limited to what is necessary for the purposes it is processed.
Therefore, it is highly essential to evaluate each alternative solution to the use of third-party cookies and whether or not it involves the collection of personal data. At the moment, no alternative solution to the use of third-party cookies including FLoC and FLEDGE appears to be a catch-all solution that fully protects a user’s privacy as well as ensures compliance with regulatory requirements.
Read our 5 Critical Consent Requirements in an Evolving Cookie Landscape that will help you choose privacy-compliant alternatives to the use of third-party cookies.
How Consumer Trust is Built and Measured
Consumer trust and ethics are becoming some of the most widely discussed topics in the privacy and technology industry. Since brands and publishers are directly engaging with consumers, it is essential for them to offer education and awareness. In fact, companies are making a collective effort to build trust by being transparent about their data collecting and processing activities. Most global privacy laws including the GDPR require organizations to inform individuals about what personal data is collected from them, how it is collected, the purposes for which it is collected, and the intended recipients of the data. This ultimately leads to an understanding of the data privacy and security practices of the company among its consumers. Besides, as the number of privacy laws continues to multiply, there has been an increased consumer awareness of data privacy.
That said, building consumer trust has to be nurtured and maintained in every industry, not just digital.
For example, the primary objective of Volvo would be to ensure the quality and durability of the product. At the end of the day, their customers, who are car owners, would be talking about their car. For such companies, trust regarding data collection and privacy becomes secondary yet important because if by any chance a breach occurs, the discussion in their community would shift to the breach, which ultimately impacts consumer trust.
Increased consumer awareness of data privacy has resulted in greater scrutinization of the data security practices of a company which forces companies to satisfy the needs of their consumers by ensuring the confidentiality of their consumers’ data and addressing their data security concerns. Therefore, beyond consent management and meeting legal requirements, it is imperative to gain consumer trust by ensuring transparency regarding data collection and privacy practices.
How the New Landscape Impacts Consumer Ethics
Data privacy and ethics go hand in hand regardless of the industry. The European data and privacy regulations along with other major privacy laws like the CCPA are established to ensure the same. Companies are not only obliged to fulfill consent requirements but also obliged to delete the data if a user requests, or risks potential fines and enforcement.
Data protection and privacy regulations further reinforce the ethical obligation on companies by limiting them to gather only the data that is required and have a valid purpose. Now the question remains how new technologies like FLoC and FLEDGE, which use AI and ML, are going to ensure consumer ethics? There is no definitive answer yet as the new data collection technologies are still in their infancy. However, upcoming regulations like the European legal framework on AI appear to be protecting an individual’s personal data in line with the data protection requirements while also ensuring the ethical use of AI services.
Securiti is helping organizations simplify, automate, and manage consent compliance across their products and services. The suite will allow organizations to:
- Scan and classify cookies
- Global web footprint
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To learn more about Securiti’s Consent Management suite, watch the demo.
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- Automate People Data Graph
- Meet cookie compliance
- Monitor and track consent
- Assess PDPO readiness
- Map data flows
- Manage vendor risk
- Breach Response Notification
- Automate data subject access request handling
- Secure fulfillment of data access
- Automate the processing of rectification requests
- Automate erasure requests
- Automate object and restriction of processing requests
- Continuous monitoring and tracking
- Automate People Data Graph
- Meet cookie compliance
- Monitor and track consent
- Assess DPA readiness
- Map data flows
- Manage vendor risk
- Breach Response Notification
- Continuous monitoring and tracking
- Automate People Data Graph
- Monitor and track consent
- Assess TRA CPR readiness
- Map data flows
- Manage vendor risk
- Customize DSR Request Portal
- Automate Data Subject Access Request Handling
- Secure Fulfillment of Data Access
- Automate Processing of Rectification Requests
- Automate Erasure Requests
- Automate Objection & Restriction of Processing Requests
- Continuous Monitoring & Tracking
- Automate People Data Graph
- Meet Cookie Compliance
- Monitor & Track Consent
- Assess PIPA Readiness
- Map Data Flows
- Manage Vendor Risk
- Breach Response Notification
- Customize DSR Request Portal
- Automate Data Subject Access Request Handling
- Secure Fulfillment of Data Access
- Automate Processing of Rectification Requests
- Automate Erasure Requests
- Automate Objection & Restriction of Processing Requests
- Continuous Monitoring & Tracking
- Automate People Data Graph
- Meet Cookie Compliance
- Monitor & Track Consent
- Assess Japan APPI readiness
- Map Data Flows
- Manage Vendor Risk
- Breach Response Notification
- Customize a data subject rights request portal for seamless customer care
- Automate data subject access request handling
- Secure fulfillment of data access
- Automate processing of rectification requests
- Automate erasure requests
- Automate objection and restriction of processing requests
- Continuous monitoring and tracking
- Automate People Data Graph
- Meet cookie compliance
- Monitor and track consent
- Assess Qatar DPL readiness
- Map data flows
- Manage vendor risk
- Breach Response Notification
- Customize a data subject rights request portal for seamless customer care
- Automate data subject access request handling
- Secure fulfillment of data access
- Automate processing of rectification requests
- Automate erasure requests
- Automate objection and restriction of processing requests
- Continuous monitoring and tracking
- Automate People Data Graph
- Meet cookie compliance
- Monitor and track consent
- Assess Bahrain PDPL readiness
- Map data flows
- Manage vendor risk
- Breach Response Notification
- Privacy Policy & Notice Management
- Customize a data subject rights request portal for seamless customer care
- Automate data subject access request handling
- Secure fulfillment of data access
- Automate processing of rectification requests
- Automate erasure requests
- Automate objection and restriction of processing requests
- Continuous monitoring and tracking
- Automate People Data Graph
- Meet cookie compliance
- Monitor and track consent
- Assess Bahrain PDPL readiness
- Map data flows
- Manage vendor risk
- Breach Response Notification
- Privacy Policy & Notice Management
- Customize a data subject rights request portal for seamless customer care
- Automate data subject access request handling
- Secure fulfillment of data access
- Automate processing of rectification requests
- Automate erasure requests
- Automate objection and restriction of processing requests
- Continuous monitoring and tracking
- Automate People Data Graph
- Meet cookie compliance
- Monitor and track consent
- Assess Bahrain PDPL readiness
- Map data flows
- Manage vendor risk
- Breach Response Notification
- Privacy Policy & Notice Management
- Customize a data subject rights request portal for seamless customer care
- Automate data subject access request handling
- Secure fulfillment of data access requests
- Automate processing of rectification requests
- Automate erasure requests
- Automate objection and restriction of processing requests
- Continuous monitoring and tracking
- Automate People Data Graph
- Meet cookie compliance
- Monitor and track consent
- Assess Saudi PDPL readiness
- .. and more
BackSnowflake is a cloud based data warehouse that allows organizations to run large scale data analytics projects to uncover business insights, run or train machine learning models, and modernize their data infrastructure.
Key Features
Microsoft O365 is the ubiquitous productivity suite for every business worker. Users rely on Office products such as OneDrive and SharePoint to collaborate with their co-workers.
Key Features
Organizations want to migrate their on-premises data to cloud data stores to take advantage of scale and flexibility while reducing operational cost of managing on-premises infrastructure. However, due to privacy regulations such as GDPR, CCPA administrators have to ensure that data is migrated in compliance with these laws.
Key Features
Protecting sensitive content is a priority for all organizations, however, due to volume of sensitive content and
Key Features
While data aids in business decision making, global privacy regulations such as GDPR, CPRA require organization to identify personal & sensitive data & use only for its intended purpose and implement adequate protection.
Key Features
Securiti enables organizations to meet multiple regulations around the world and helps with compliance requirements through AI-driven PI data discovery, DSR automation, documented accountability, enhanced visibility into data processing activities and AI-driven process automation.
Securiti is a complete PrivacyOps Solution.
View all solutionsThe California Consumer Privacy Act (CCPA) was signed into law on June 28, 2018 and is scheduled to come into effect on January 01, 2020. Often compared to GDPR, CCPA protects consumers from mismanagement of their personal data and gives the consumer control over what data is collected, processed, shared or sold.
Key Features
The California Privacy Rights Act (CPRA) will take effect from January 1, 2023, and will apply to personal information collected on or after January 1, 2022. Enforcement of the CPRA will start six months later (July 1, 2023). The CPRA builds upon the CCPA, strengthening user privacy for California residents.
Key Features
The EU General Data Protection Regulation (GDPR) came into effect on May 25, 2018 and changed the global privacy landscape. It has broadened the definition of processing activities and personal data, impacting companies worldwide, and has tightened the rules to obtain consent before processing information.
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The Lei Geral de Proteção de Dados (LGPD) is modeled with similarities to the General European Data Protection Regulation (GDPR) and contains sixty-five articles. It was approved on August 14, 2018 and its validity has undergone several changes, the last relevant fact being MPV 959. LGPD is in effect since September 18, 2020. The sanctions by the ANPD (Brazilian Data Protection Authority) were postponed to August 2021. The LGPD allows people have more rights over their data and expects organizations to comply with their regulations or face heavy penalties or fines.
Key Features
China has complex data protection and data security regime, however, the following are three main laws that primarily cover China’s data protection and data security regulatory framework. These laws are:
Frameworks
The government of New Zealand has recently replaced its long-existing Privacy Act of 1993 with a modernized version, the Privacy Act 2020. The New Zealand Privacy Act 2020 (NZPA) will take effect from December 1, 2020.
Key Features
The Personal Data Protection Act, B.E. 2562 (2019) ('PDPA') is Thailand's first consolidated data protection law, which was published in the Thai Government Gazette on 27 May 2019. This law was said to go into effect on 27 May 2020. However, in May 2020, the Thai Cabinet through a Royal Decree has deferred the enforcement of certain data protection provisions of the PDPA until 31 May 2021.
Key Features
In order to protect the data of individuals in South Africa, Parliament assented to the Protection of Personal Information Act (POPIA) on 19th November 2013. The commencement date of section 1, Part A of Chapter 5, section 112 and section 113 was 11 April 2014. The commencement date of the remaining sections (excluding section 110 and 114(4)) was 1st July 2020. As per the Regulator’s Operational Readiness Plan the Regulator will be able to take enforcement actions for the violation of POPIA by July 1st 2021.
Key Features
The DIFC Data Protection Law, 2020 lays down regulations regarding the collection, disclosure and processing of personal data in the DIFC, a special economic zone in Dubai. It also gives rights to individuals whom the personal data relates to and provides power to the Commissioner of Data Protection to enforce the law, enact regulations and approve industry-wide Codes of Conduct.
Key Features
The Australia Privacy Act 1988 (Privacy Act) was enacted to protect the privacy of data subjects and regulate how Australian agencies and organizations with an annual turnover of more than $3 million handle their customers’ personal information.
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Singapore’s Personal Data Protection Act (PDPA) comprises various provisions governing the collection, disclosure, use, and care of personal data. It recognizes the rights of individuals to have more control over their personal data and the needs of organizations to collect, use, or disclose personal data for legitimate and reasonable purposes.
Key Features
On April 13, 2000, the Personal Information Protection and Electronic Documents Act (PIPEDA) received Royal Assent. It came into force in stages, beginning on January 1, 2001. PIPEDA came fully into effect on January 1, 2004. The legislation applies to organizations that collect, use or disclose personal information in the course of commercial activities.
Key Features
After the invalidation of Privacy Shield, many companies are relying on the SCCs in order to continue transferring data of EU citizens to companies based in countries who are not deemed adequate for data transfer.
After the CJEU judgement, it is clear that these companies have to conduct Risk Assessments with the data recipients in these countries in order to ensure they have enough controls to mitigate any potential data or regulatory risk.
Key Features
On 2nd March, 2019, the Department of Health—Abu Dhabi (DoH), launched the Abu Dhabi Healthcare Information and Cyber Security (ADHICS) Standard. This is the first standard that aims to provide healthcare professionals and entities a comprehensive guide to the regulation of healthcare data in Abu Dhabi. This law ensures the highest levels of privacy and security of patients’ data, in line with international standards, is maintained.
Key Features
On January 31, 2020, the government of Saudi Arabia issued the Executive Regulations to the Saudi E-Commerce Law 2019 (“ECL”) that was in effect since October 2019. The Executive Regulations together with the ECL (“Law”) aim to protect consumers’ personal data by requiring organizations to take appropriate technical and administrative measures.
Key Features
Turkey was one of the first countries to start the trend of legislating data protection. Turkey published “Law on the Protection of Personal Data No. 6698 (LPPD) covering personal data protection on April 07, 2016.” The LPPD is based on the European Union Data Protection Directive 95/46/EC and has several similarities with the GDPR. It aims to give data subjects’ control over their personal data and outlines obligations that organizations and individuals dealing with personal data must comply with. The LPPD has also provided comprehensive guidelines for the transfer of personal data to the third parties.
Key Features
In December 2019, India, following several other countries' footsteps on the privacy laws' developments, introduced the Personal Data Protection Bill (PDPB) to regulate the processing, collection, and storage of personal data.
Key Features
The Irish Data Protection Act, 2018 (Irish DPA) implements the General Data Protection Regulation (GDPR) and transposes the European Union Law Enforcement Directive in Ireland. Since it incorporates most of the provisions from the GDPR and the Law Enforcement Directive with limited additions and deletions as per the national law, it is considered to be the principal data protection legislation in Ireland.
Key Features
The Personal Data (Privacy) Ordinance (Cap. 486) as amended in 2012 (the “PDPO) is the primary legislation in Hong Kong which was enacted to protect the privacy of individuals’ personal data, and regulate the collection, holding, processing, disclosure, or use of personal data by the organizations.. The Data Protection Principles ( the “DPPs or DPP ''), which are contained in Schedule 1 to the PDPO, outline how entities should collect, handle, disclose, and use personal data.
Key Features
In 2012, the Philippines passed the comprehensive privacy law, Data Privacy Act 2012 Republic Act. No, 10173 (the "DPA"). The DPA recognizes the rights of individuals to have more control over their personal data while ensuring a free flow of information to promote innovation and growth.
Key Features
The United Arab Emirates (UAE) has a Federal Telecommunication Law ( Federal Law) which requires that a company must hold a license in order to provide public communications services and operate public telecommunication networks. Under this Federal Law, a Telecommunication Regulatory Authority (TRA) was established which regulates the telecommunication sector in the UAE.
Key Features
South Korea has a general law and several special laws that cover data protection and individuals' privacy. South Korea's data protection regime is considered one of the strictest data protection regimes owing to its notification requirements, opt-in consent, extensive data subject rights, mandatory data breach notifications, and heavy sanctions in case of non-compliance.
Key Features
The Act on the Protection of Personal Information (the "APPI'') regulates personal related information and applies to any Personal Information Controller (the “PIC''), that is a person or entity providing personal related information for use in business in Japan. The APPI also applies to the foreign PICs which handle personal information of data subjects (“principals”) in Japan for the purpose of supplying goods or services to those persons.
Key Features
Qatar is the first gulf country that has passed a national data privacy law and has paved the way for all other gulf countries to follow suit. In 2016, Qatar enacted Law no. 13 Concerning Personal Data Protection (the “DPL”). Qatar became the first Gulf Cooperation Council (GCC) member state to issue an “European Style” applicable data protection law. The DPL establishes a certain degree of personal data protection, provides data subject rights, and prescribes the guidelines for organizations for the processing of personal data within Qatar.
Key Features
Bahrain has become a part of the countries that have enacted a data privacy regulation to protect the rights of their residents. On 12 July 2018, Bahrain drafted its law on data protection regulation, Law No. 30. This then went on to go into effect on the 1st of August 2019 as the Bahrain Personal Data Protection Law (PDPL) and supersedes all other laws. The PDPL recognizes the rights of individuals to have more control over their personal data and the needs of organizations to collect, use, or disclose personal data for legitimate purposes.
Key Features
After the Success of the California Consumer Privacy Act (CCPA) in California, Virginia is now following the same path. The Virginia Consumer Data Protection Act (VCDPA) has been passed and will go into effect on 1st of January 2023. This law is closely designed after the newer California Privacy Rights Act (CPRA) but with a few significant and important differences.
Key Features
After the VCDPA in Virginia, Colorado has closely followed suit and has passed their own comprehensive data privacy law to protect the personal data of the residents of Colorado.The Colorado Privacy Act (CPA) was signed into law on the 8th of July, 2021 and has been modelled closely after the VCDPA.
Key Features
Saudi Arabia has drafted a data privacy regulation to protect the personal data of individuals in Saudi Arabia. This law was approved by the Council of Ministers in Saudi Arabia and is named the Personal Data Protection Law (the “PDPL”).
Key Features
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