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Everything you need to know about third-party cookies
Published on November 29, 2021 AUTHOR - Privacy Research Team
When browsing the web, there's a high chance that you've come across a popup notification telling you that the website uses cookies. Many times, users go ahead and hit agree without fully knowing what they are signing up for. For all you know, you agree to first-party or third-party cookies.
Internet cookies aren't those artery-clogging goodness made by grandma. Instead, an internet cookie is a small piece of data from a particular website stored on a user's computer while they browse the web.
One of the common purposes of internet cookies is to track users as they browse through multiple websites and display them with personalized ads (based on their web searches, likes, and dislikes). Before further ado, let's get down to third-party cookies, how they collect user data, and their legal implications.
What are Third-Party Cookies?
Unlike a first-party cookie set by the website's server, a third-party cookie is usually set by a third-party domain/server (i.e. an ad-based vendor). Third-party cookies are dropped via a specific vendor code or tag deployed on a particular website and stored under a different domain. A third-party cookie is available to any website that loads the third-party server's code.
Third-party cookies have multiple purposes, such as keeping track of users' browsing activities to show them personalized ads of goods and services. For instance, if you search for a Halloween costume, you may see your screen filled with ads regarding Halloween costumes on multiple websites, especially on social media sites such as Facebook.
Even if the user terminates the session or closes their browser, ads will continue targeting as the tracking data is stored on the users’ computer.
Simultaneously, cookies also have native functions such as remembering a user's login credentials for a particular website, enabling them to instantly log in without manually adding their email address and password.
How Third-Party Cookies Work?
Third-party cookies work by embedding JavaScript from one website into another. This enables them to transfer the habits of a user across multiple websites. Third-party cookies accumulate data gathered between browsing sessions and map a clear picture of the user.
For instance, when users are on a shopping site, they browse through multiple categories, scrolling through the items they like. Typical cookies injected by the shopping site would allow it to remember the things a user has looked at and added to their cart. On the other hand, third-party cookies would not forget this data but may share it with other websites.
With third-party cookies in place, once you revisit the site, you will be shown the items you've previously looked at along with related articles that you might like (based on your previous selections). Again, the primary aim of such third-party cookies storing a user's online activity is to increase the likelihood of a conversion.
Users who scratch their heads thinking why they're being displayed ads on sites they're visiting for the first time, the answer is most of the time simple – third-party cookies. Third-party cookies are one of the most reliable ways to send users targeted ads across the web.
What Does Major Global Privacy Laws Say about Third-Party Cookies?
While third-party cookies are a great way of marketing products and services for advertisers, not all users want to be targeted. Multiple data regulation laws put relentless pressure on companies who engage in ad display and transferring cookie information.
GDPR and Third-Party Cookies
The General Data Protection Regulation (GDPR) requires websites to collect explicit consent from the user regarding any cookies collected or shared other than the ones necessary to run the site.
GDPR has strict measures in place governing how user data should be prioritized and protected. Under the GDPR, consent means requiring a "clear affirmative action."
The conventional pre-checked box or a popup cookie banner stating that users consent to the website using cookies is no longer sufficient. This means that users must willingly opt-in to having their data collected and used for marketing purposes.
To voluntarily consent to cookies, GDPR requires companies to ask the users in a "clear, concise, and not unnecessarily disruptive way." This means that the site must have a user-friendly consent mechanism that doesn't contain technical or legal jargon.
Additionally, GDPR requires websites to have a seamless mechanism in place where users have the option and the right to take back their decision to grant data collection, also known as the "right to be forgotten."
CCPA and Third-Party Cookies
The California Consumer Privacy Act, routinely referred to as CCPA, explicitly states that cookies' data is personal information.
Although CCPA doesn't emphasize that businesses attain opt-in consent for cookies like the GDPR, it requires them to disclose any types of data they have collected via cookies. Furthermore, CCPA demands firms to reveal what they have been doing with the accumulated data.
Like GDPR, CCPA compels businesses to take the necessary steps to comply with the law by embedding the option of opting out of the sale of personal information collected by users via cookies.
LGPD and Third-Party Cookies
Brazil's Lei Geral de Proteção de Dados (LGPD) or the General Personal Data Protection Law states that companies are responsible for providing prior notice and obtaining consent regarding cookies.
The law specifies that it's the data holder's responsibility to obtain the user's consent in writing or any other means. Once the cookie has been collected, the data holders must have clear records to prove they complied with LGDP cookie consent.
Furthermore, entities collecting cookies must explain whenever data is collected beyond the scope of the objective formerly informed to the user. Failure to justify could result in fines. Without any legal basis, the data controller must acquire consent from the user to process cookies. As such, proper mechanisms should be deployed to facilitate consent from users.
In a Nutshell
Websites and companies can collect third-party cookies if they respect local and international laws put in place by data regulators and governments. The legalities of collecting and sharing cookies should be followed by the law to avoid any controversial use of internet cookies or have fines imposed by data regulators.
If you’re unsure your business website complies with data protection laws related to cookies, make use of the cookie consent management tool that scans your websites to detect and classify cookies that are dropped.
The tool visualizes and tracks 1st and 3rd party code that runs on your websites, providing a simple and secure way for website visitors to exercise their right to opt-out of online tracking. Simultaneously, businesses can avoid conflicts and fines from data regulators by complying with cookie consent requirements.
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- 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
- 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
- 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
- Monitor and track consent
- Assess data protection and privacy act readiness
- Map data flows/cross border data transfers
- Meet cookie compliance
- Automate breach response notification
- Manage vendor risk
- .. and more
- 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
- Monitor and track consent
- Assess Ghana’s DPA 2012 readiness
- Meet cookie compliance
- Automate breach response notification
- Manage vendor risk
- .. and more
- 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
- Monitor and track consent
- Assess data protection and privacy act readiness
- Meet cookie compliance
- Automate breach response notification
- Manage vendor risk
- .. and more
- Automate data subject request handling
- Secure fulfillment of data access requests
- Automate the processing of rectification requests
- Automate erasure/destroy/anonymize requests
- Monitor and track consent
- Continuous monitoring and tracking
- Assess PDP Regulations readiness
- Map data flows and generate reports
- Automate data breach response notifications
- Meet cookie compliance
- .. and more
- Automate data subject request handling
- Secure fulfillment of data access requests
- Automate the processing of rectification requests
- Automate object and restriction of processing requests
- Automate erasure/destroy/anonymize requests
- Monitor and track consent
- Continuous monitoring and tracking
- Assess PDPA readiness
- Map data flows and generate reports
- Automate data breach response notifications
- Manage vendor risk
- Meet cookie compliance
- Privacy policy and notice management
- .. 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.
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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.
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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
UAE have number of laws in place that govern privacy as well as data security in the UAE. Some of those includes:
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.
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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 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.
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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 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.
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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.
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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.
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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.
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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.
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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”).
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Uganda’s Data Protection and Privacy Act 2019 seeks to protect Uganda’s citizens and their personal data by outlining and implementing rules for processing personal data and sensitive personal data by entities within or outside the country.
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Ghana Data Protection Act 2012 establishes a comprehensive set of provisions governing the collection, processing, use, and protection of personal data by the data controller or data processor.
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Kenya’s Data Protection Act, 2019 (DPA) is based on the framework of the EU’s General Data Protection Regulation (GDPR), making it the third region in East Africa to have enacted and enforced data protection regulations.
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Although there is no comprehensive data protection law in Indonesia, however, there are several regulations that regulate the personal data processed in the electronic systems by the Electronic Service Providers (ESPs).
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Malaysia’s Personal Data Protection Act (PDPA) was passed by the Parliament of Malaysia on 2 June 2010. The PDPA sets out a complete cross-sectoral framework to protect the personal data of individuals with respect to commercial transactions.
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