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Why Every Business Should Care About Cookie Tracking and Privacy Controls

Dissecting the New York Attorney General’s guide on safeguarding against unwanted online tracking

The hidden risks of cookie tracking

Ever noticed those pop-ups asking you to accept cookies when you visit a website? Saying ‘accept’ to these little text files might seem harmless, but they play a powerful role in how businesses interact with you online. Cookies keep you logged in, remember your shopping cart, and personalize your browsing experience.

However, they also raise significant privacy concerns. With the growing emphasis on data privacy in an increasingly digital world, understanding and managing cookie tracking has never been more critical for businesses.

Because here’s the catch: not all businesses are getting it right. Some are making serious mistakes that could not only erode customer trust but also land them in legal hot water. In this blog, we’ll dive into the common pitfalls businesses face with cookie tracking, the impact of New York’s consumer protection laws, and how you can ensure your website stays compliant while maintaining customer trust.

Why cookie tracking matters to your business

Cookies are more than just bits of data; they’re essential to your website’s functionality and your business’s success. They enhance user experience, drive marketing strategies, and help you understand customer behavior. However, if mismanaged, cookies can also be a liability.

The recent scrutiny from the New York Attorney General’s Office (OAG) highlights just how crucial it is to get your cookie tracking and privacy controls right.

The OAG’s investigation revealed that many businesses, even high-traffic ones, fail to implement proper privacy controls. They found that on some websites, visitors were still tracked even after opting out, leading to broken trust and potential legal consequences. This is where businesses need to step up their game.

What you need to know: common cookie tracking mistakes

Uncategorized or miscategorized tags and cookies

One of the most common issues is the mismanagement of cookie categories. Websites often use consent-management tools that allow users to enable or disable certain types of cookies. But if these cookies aren’t properly categorized or tagged, they won’t respond to user preferences, leading to unauthorized tracking.

Misconfigured tools and hardcoded tags

Another frequent error is the misconfiguration of tools. Many businesses use both consent-management (which allows users to control what data they share and manage their consent preferences) and tag-management (which controls the deployment of tags that collect data on websites) tools.

But these need to be perfectly synced to work correctly. If not, cookies may remain active even when a user opts out. Additionally, some tags are hardcoded into the website, bypassing privacy controls entirely.

Over-reliance on tag settings

Businesses often rely on tag settings from third-party providers like Google or Meta, assuming these settings (which control how and what data is collected and used by tags on their websites) will automatically protect them from legal risks.

However, these settings may not be effective in certain states with strict privacy laws. In New York, this reliance can lead to unintended data collection and potential violations.

Dos and don’ts for privacy-related disclosures and controls

According to the OAG, these are the Dos and Don’ts for providing effective disclosures and avoiding dark patterns that complicate easy-to-understand controls:

Do Don’t
Use plain, clear language Use large blocks of text that consumers are unlikely to read
Label buttons to clearly convey what they do Use ambiguous buttons (e.g., clicking “X” in the corner of a cookie banner)
Make the interface accessible (e.g., allowing users to tab to privacy controls with a keyboard) Use complicated language, including legal or technical jargon
Give equivalent options equal weight (e.g., “Accept” and “Decline” buttons of equal size, color, and emphasis) Use confusing interfaces
De-emphasize options to decline tracking
Make it more difficult to decline tracking than to allow it (e.g., requiring more steps to opt out)

How to do it right: best practices for cookie tracking

Designate and train responsible individuals

Start by designating a qualified individual or team to manage your website’s tracking technologies. Ensure they are well-trained and knowledgeable about your business’s privacy policies and the technologies you use.

Investigate and understand your tags

Before deploying any new tags or tools, investigate what data they collect and how it’s used. Don’t hesitate to ask developers for information that might not be publicly available. This will help you avoid surprises and ensure compliance.

Proper configuration and regular testing

Once your tools are set up, configure them correctly and test them regularly. Automated scanning tools can help identify issues, but manual checks are essential to ensure everything works as intended.

Review and adjust regularly

Technology and privacy laws are constantly evolving. Regularly review your tags and tools to ensure they are properly categorized and in sync with your consent-management tools. This proactive approach will help you stay compliant and maintain customer trust.

The bottom line: complying with New York’s consumer protection laws

In New York, your business’s privacy controls and disclosures must be truthful and not misleading. Ensure that your website’s privacy statements are accurate, and that your controls work as described. Avoid using confusing language or designing interfaces that mislead users about their privacy choices.

Protect your business and your customers

Privacy isn’t just a legal requirement; it’s a cornerstone of customer trust. Don’t let mismanaged cookies and broken privacy controls undermine your business. Audit your tracking technologies, refine your privacy controls, and ensure your website complies with all applicable laws today. Your customers—and your bottom line—will thank you.

Nymity Research

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