Cookies are small text files that a website places on a user's device to store information about the user's preferences and behavior. Cookies are an important part of modern website functionality because they allow websites to remember a user's preferences, login information, shopping cart items, and other vital information. However, as the use of cookies has spread, there has been an increase in concerns about data privacy and the collection of personal data.

The General Data Protection Regulation (GDPR) and the California Privacy Rights Act (CPRA) are just two examples of privacy laws enacted to protect users' rights and ensure that businesses are transparent about their use of cookies. This article will focus on a specific type of cookie known as "strictly necessary cookies" and discuss their importance in website functionality and the privacy laws that govern their use.

This article will give you an overview of strictly necessary cookies, the cookie consent process, and the privacy laws governing their use. Furthermore, we will go over the various types of cookies, such as performance cookies, advertising cookies, and preference cookies, and how they differ from strictly necessary cookies. You will have a better understanding of the role of strictly necessary cookies in website functionality, as well as the significance of cookie compliance in the context of data privacy, by the end of this article.

What are Strictly Necessary Cookies?

Strictly necessary cookies are required for a website's basic functions. These cookies save information required for the website to function properly. Strictly necessary cookies do not collect personal information and do not require user consent under privacy laws such as the GDPR and the CPRA. Websites must, however, be transparent about the use of strictly necessary cookies and inform users about how these cookies are used.

Cookies used to remember a user's login information or to ensure that the contents of a shopping cart are remembered as a user moves from page to page on a website are strictly necessary cookies.

Cookie Consent and the Cookie Banner

Cookie consent is the process of obtaining user consent to use cookies. This procedure is critical because it ensures that users are informed about the types of cookies used by a website and can control cookie use on their devices. A cookie banner is one of the most common ways to obtain cookie consent.

A cookie banner is a pop-up window that appears on a website and informs users about the different types of cookies used while requesting the data subject’s consent. Cookie banners usually allow users to accept all cookies, only essential cookies, or reject all cookies. Some cookie banners also allow users to limit the use of specific types of cookies, such as performance cookies or advertising cookies.

Websites must be transparent about their cookie use and provide users with a clear and simple explanation of the cookies used. This ensures that users are aware of the types of cookies being used on their devices and can control how they are used. The cookie consent process and the use of cookie banners are important steps in ensuring that users are informed about cookie use and have control over how cookies are used on their devices.

Click here for our article on GDPR-compliant cookie banners.

First-Party Cookies vs. Third-Party Cookies

Cookies can be classified as either first-party cookies or third-party cookies, depending on the source of the cookie. First-party cookies are cookies set by the website that a user is visiting, while third-party cookies are those set by a domain other than the website that the user is visiting.

For example, if a user visits an online retailer's website, any cookies the retailer sets up would be considered first-party cookies. However, if the retailer uses Google Analytics to track user behavior on their website, any cookies set by Google Analytics would be considered third-party cookies.

First-party cookies are generally considered to be more secure than third-party cookies, as they are set by the website that a user is visiting and are under the control of the website. Third-party cookies, on the other hand, are set by a third-party domain and can track a user’s behavior across multiple websites. This can be a concern from a privacy perspective, as it can allow third-party domains to collect a significant amount of user data.

For our article on the state of third-party cookies in 2023, click here.

Categories of Cookies

Cookies can also be classified into different categories based on their purpose and the types of data they collect. Some common categories of cookies include:

1. Functional cookies: As discussed earlier, these are essential for a website's basic functions, such as providing a shopping cart or remembering a user’s login information.
2. Performance cookies: These cookies collect information about how a user interacts with a website, such as the pages a user visits, the time spent on the website, and any error messages encountered. This information is used to improve the website's performance and provide a better user experience.
3. Advertising cookies: These cookies are used to deliver targeted advertising to a user based on their behavior on the website. Advertising cookies can be set by the website the user is visiting and third-party domains.
4. Preference cookies: These cookies are used to remember a user’s preferences, such as the language they prefer to use on a website or their preferred font size.
   

Session Cookies and Persistent Cookies

Cookies can also be classified into two types, based on their lifespan: session cookies and persistent cookies. Session cookies are temporary cookies deleted from a user’s device when the user closes their web browser. These cookies store information necessary for the website to operate properly during a user’s session on the website.

Persistent cookies, on the other hand, are stored on a user’s device for a set period of time, even after the user closes their web browser. These cookies are used to store information that is necessary for the website to remember a user’s preferences and behavior over time. Persistent cookies can also be used to track a user’s behavior across multiple visits to a website.

Strictly Necessary Cookies and Privacy Laws

Strictly necessary cookies are exempt from the consent requirements of privacy laws, such as the General Data Protection Regulation (GDPR) and the ePrivacy Directive (also known as the Cookie Law) in the European Union, the California Consumer Privacy Act (CCPA), and the California Privacy Rights Act (CPRA) in California. However, websites must be transparent about how they use these cookies and inform users about their purpose. These laws also require websites to be transparent about their cookies and obtain user consent for non-essential cookies.

The GDPR, for example, requires that websites provide clear and concise information about the types of cookies used, the purposes for which the cookies are used, and the types of personal data collected by the cookies. The GDPR also requires that websites obtain user consent for cookies through an opt-in or an accept-all option.

Google Analytics Cookies and Data Privacy

Google Analytics is a popular tool that is used by many websites to track user behavior on their website. Google Analytics uses cookies to collect information about how users interact with a website, such as the pages they visit, the time they spend on the website, and any error messages they encounter.

The use of Google Analytics cookies can raise privacy concerns, as the information collected by these cookies can be used to identify individual users and track their behavior across multiple websites. To address these privacy concerns, Google Analytics has implemented several measures to protect users' privacy, such as anonymizing IP addresses and using unique identifiers to track users.

How Do Strictly Necessary Cookies Affect Your Website?

Since privacy laws govern a website's use of cookies, it is prudent to comply with the requirements set forth by all applicable privacy laws.

To ensure compliance with these laws, many websites use a consent banner that provides information about the types of cookies used by the website and requests user consent for their use. Additionally, the website may use electronic communications, such as javascript, to enable certain features, such as load balancing, and to track user behavior using pixels. Websites that use cookies to collect information about their users may also integrate with social media platforms, such as Facebook and Twitter, to deliver targeted advertising.

Websites need to seek legal advice to ensure that their use of cookies complies with applicable privacy laws and regulations. Additionally, websites may consider pricing and licensing models for their use of cookies and their integration with third-party tools and platforms.

Final Thoughts

Strictly necessary cookies are essential for the basic functions of a website, such as providing a shopping cart or remembering a user’s login information. These cookies are subject to privacy laws, such as the GDPR and the CCPA, which require that websites obtain user consent for the use of cookies and that the use of cookies is clearly explained to users.

While strictly necessary cookies are considered relatively secure, using other types of cookies, such as Google Analytics cookies, can raise privacy concerns. Websites need to be transparent about the types of cookies they use, the purposes for which they use the cookies, and the types of personal data they collect, to comply with privacy laws and protect their users' privacy.