Alex Denne
Growth @ Genie AI | Introduction to Contracts @ UCL Faculty of Laws | Serial Founder

Creating a Cookie Policy Step-by-Step

23 Mar 2023
32 min
Text Link

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Creating a comprehensive, up-to-date cookie policy is an essential undertaking for any business that collects, stores and processes personal data. While this may sound like a complex task, the Genie AI team are here to help. With millions of data points and an open source legal template library, they can provide anyone with the tools they need to draft and customize high quality legal documents quickly and easily - without paying a lawyer.

A cookie policy is a legal document that outlines how a website collects, uses and stores data collected from its visitors. Cookies are small pieces of data stored by web browsers on user devices, which then allow the website in question to track user visits and tailor their experience accordingly; whether it be providing more relevant content or delivering targeted ads. Having one in place is important for businesses as it ensures compliance with applicable laws - such as GDPR in Europe - as well as demonstrating to customers that their privacy is being respected. Further still, understanding customer behaviour through cookies can provide valuable insights that can be used to improve user experience and drive sales.

The process of setting up a cookie policy may seem daunting but with our free step-by-step guide anyone can create one quickly and accurately. Our template library provides users access to market standard policies right away so all you need do is fill in sections about your own business’ use of cookies - such as what type of cookies you use, how long they last etc - before customizing them further from there; making sure your policies align with international standards along the way without needing the assistance of an expert or lawyer. Crucially our approach does not require users having an account with us so anyone can gain access to our resources without having signed up beforehand!

Creating privacy policies may seem like laborious task but using Genie AI’s resources makes it straightforward for anyone regardless of their expertise or knowledge base on the topic; allowing everyone to set up compliant policies quicker than ever before! So if you’re looking for comprehensive guidance on cookie policy formation (and maybe even some help along the way!) then read on below for more information about accessing our template library today!

Definitions (feel free to skip)

EU GDPR: European Union General Data Protection Regulation. A set of laws that establish a framework for data protection and privacy for individuals within the European Union.

California Consumer Privacy Act (CCPA): A law in California that provides consumers with the right to know what personal information is collected about them, who it is shared with, and the right to opt-out of the sale of their personal information.

UK Data Protection Act (DPA): A law in the United Kingdom that protects individuals’ personal data and sets out rules for its processing.

Opt-out: The ability for a user to choose to not participate in something, such as the use of cookies.

Contents

  • Explain why a cookie policy is important for online businesses
  • Describe the different types of cookies and how they are used
  • Explain how a cookie policy works
  • Explain how to monitor and update a cookie policy
  • Provide guidance on how to create and implement a cookie policy
  • Identify the types of cookies the business uses
  • Write a cookie policy that meets legal requirements
  • Make the policy available to customers
  • Obtain consent from customers
  • Offer tips on how to make sure customers are aware of the cookie policy
  • Make the policy visible on the website
  • Provide a link to the policy in email communications
  • Offer customers the opportunity to opt out of cookie usage
  • Describe the different laws and regulations related to cookies
  • Explain the EU GDPR and other applicable laws
  • Explain the applicable cookie laws in different countries
  • Discuss the implications of not having a cookie policy
  • Explain the risks of not having a cookie policy
  • Describe potential consequences of not having a cookie policy
  • Explain how to audit and review a cookie policy
  • Offer guidance on how to address customer questions related to cookies

Get started

Explain why a cookie policy is important for online businesses

  • Understand why a cookie policy is necessary: Cookies are small data files that are placed on a user’s computer when they visit a website. They can be used to store information about user’s preferences and activities, which can be used to improve the user experience when they visit the website again.
  • Be aware of the legal requirements: Depending on the country in which the website is based, there may be certain legal requirements for businesses to have a cookie policy. This policy should explain what types of cookies are used, and how they are used.
  • Understand the importance of transparency: It is important for businesses to be transparent with their customers about how their data is being used. Having a cookie policy in place allows customers to make an informed decision about how their data is used and how it is protected.

How you’ll know when you can check this off your list and move on to the next step:
Once you have a clear understanding of why a cookie policy is important for online businesses, you can move on to the next step.

Describe the different types of cookies and how they are used

  • Understand the different types of cookies and how they are used:
  • Session Cookies: These cookies are used to store temporary data and are deleted when the user closes their browser
  • Persistent Cookies: These cookies are stored in a user’s browser and are used to remember user preferences and settings
  • Third Party Cookies: These cookies are installed by third-party websites and are used to track user activity on the website
  • Check the list of cookies your website uses and make sure you are aware of what each of the cookies does.
  • Make sure you are aware of any changes to the list of cookies your website uses.
  • Make sure you are aware of any potential privacy issues that may arise from the use of certain cookies, and consider whether these can be addressed in the policy.
  • Make sure to document any changes to the types of cookies your website uses, and update your cookie policy accordingly.
  • When you are finished, make sure that you have included a comprehensive description of the different types of cookies and how they are used on your website in your cookie policy.

Explain how a cookie policy works

  • Understand the purpose of a cookie policy, which is to inform website visitors about the use of cookies on the website
  • Learn about the legal requirements for creating a cookie policy, such as the need to obtain consent from the users
  • Determine the type of cookies you will use on your website and be sure to include information on these cookies in your cookie policy
  • Make sure your cookie policy is written in plain language and clearly outlines the use of cookies on your website
  • Include information on how users can manage cookies through their web browsers
  • Once you have written the cookie policy, make sure to proofread it and address any errors or omissions
  • Check off this step when you have a complete and accurate cookie policy written for your website.

Explain how to monitor and update a cookie policy

  • Monitor your cookie policy regularly to ensure it’s up-to-date with any changes in laws, regulations, or best practices
  • Make sure to update your cookie policy whenever you make any changes to the cookies you use
  • Keep track of any new regulations or best practices that could affect your cookie policy
  • Make sure you consult with your legal team if needed when making any changes to your cookie policy
  • Review your cookie policy once a year to make sure it’s still accurate
  • When you’ve completed all these steps, you can check this off your list and move on to the next step.

Provide guidance on how to create and implement a cookie policy

  • Identify the purpose of the cookie policy - what information do you want to communicate to your users?
  • Draft a policy that covers all the relevant information - what cookies are being used, why, and how to opt-out.
  • Review the policy with legal counsel to ensure it meets all applicable local laws.
  • Publish the policy on your website, making sure it’s easy to find.
  • Inform users about the policy and invite them to review it.
  • Monitor the policy regularly and update it when necessary.

When you can check this off your list:

  • When you have identified the purpose of your cookie policy.
  • When you have drafted the policy that covers all the relevant information.
  • When you have reviewed the policy with legal counsel.
  • When you have published the policy on your website.
  • When you have informed users about the policy and invited them to review it.
  • When you have monitored the policy regularly and updated it when necessary.

Identify the types of cookies the business uses

  • Check the business website to see if any cookies are already in use
  • Investigate any third-party services used by the business (such as analytics, advertising networks, and embedded content) to determine if they are using cookies
  • Ask the IT team if they have added any cookies to the business website
  • Determine if any additional cookies need to be added in order to use certain features or improve user experience
  • Make a list of all cookies used by the business

You’ll know you can check this step off your list and move on to the next once you have compiled a list of all the cookies used by the business.

Write a cookie policy that meets legal requirements

  • List out the types of cookies that your business uses
  • Explain why you use each type of cookie
  • Describe what happens if visitors choose to disable cookies
  • Include a link to the privacy policy
  • Make sure that the policy is up-to-date with current legal requirements
  • Ensure that the policy is written in plain language
  • Be sure to obtain the necessary legal advice

You can check this step off your list when you have listed the types of cookies your business uses, explained why you use them, described what happens if visitors choose to disable cookies, included a link to the privacy policy, ensured the policy is up-to-date with current legal requirements, written the policy in plain language and obtained the necessary legal advice.

Make the policy available to customers

  • Put the cookie policy on the website, and make it easy to find
  • Link to the policy from the website’s footer
  • Put the policy in the website’s mobile app
  • Send the policy out to customers via email

Once the policy is made available to customers, you can move on to the next step.

Obtain consent from customers

  • Create a notice on your website and/or app informing customers that your website/app uses cookies
  • Ask customers for their consent to use cookies on their device
  • Make sure customers can easily accept or decline consent to using cookies
  • Allow customers to easily revoke consent, if they change their mind
  • Make sure customers can navigate away from the consent notice without either accepting or declining
  • Document the date and time of when customers gave consent

When you can check this off your list and move on to the next step:

  • You have created a notice on your website and/or app informing customers that your website/app uses cookies
  • You have asked customers for their consent to use cookies on their device
  • You have made sure customers can easily accept or decline consent to using cookies
  • You have allowed customers to easily revoke consent, if they change their mind
  • You have made sure customers can navigate away from the consent notice without either accepting or declining
  • You have documented the date and time of when customers gave consent

Offer tips on how to make sure customers are aware of the cookie policy

  • Make sure to place a link to your cookie policy in a visible location on your website, such as in the footer.
  • Place a banner at the top of the website that provides information about the use of cookies and links to the cookie policy.
  • Explain the use of cookies in the FAQ section of your website.
  • Include cookie information in any sign-up forms or registration processes.
  • Send an email to existing customers informing them of the new cookie policy.

Once you have implemented all these tips, you can check this step off your list and move on to the next step.

Make the policy visible on the website

  • Create a link to the cookie policy on the website footer
  • Place the link in a visible location on the website
  • Test the link to make sure it works properly
  • Once the link is tested and works properly, the task is complete and you can move on to the next step.

Provide a link to the policy in email communications

  • Ensure that a link to the Cookie Policy is included in all emails sent to customers
  • Include the link to the Cookie Policy on the footer of all emails
  • Test the link to make sure it is functional and leads to the correct page
  • Update any existing email templates to include the link
  • When the link is visible and functional in all emails, you can move on to the next step.

Offer customers the opportunity to opt out of cookie usage

  • Create a form that customers must fill out to opt out of cookie usage
  • Include a checkbox that customers must check to signal that they understand the implications of opting out of cookie usage
  • Provide a link to the Privacy Policy on the form
  • Make sure the form includes a button to submit their opt-out choice
  • After customers have completed the form, capture their opt-out choice in your database

You will know you have successfully completed this step when you have created the form, provided a link to the Privacy Policy, and have a way to capture the customer’s opt-out choice.

Describe the different laws and regulations related to cookies

  • Research applicable laws and regulations related to cookie usage and data collection
  • Identify the relevant laws and regulations for your specific jurisdiction
  • Gather information about the EU General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), and other applicable laws and regulations
  • Make sure to consider any industry-specific regulations
  • Take note of any changes you will need to make to your cookie policy in order to ensure compliance
  • After researching and gathering the necessary information, you will be ready to move on to the next step in creating your cookie policy.

Explain the EU GDPR and other applicable laws

  • Research the EU GDPR and other applicable laws related to cookies.
  • Understand the various obligations related to cookie usage and the impact on users’ privacy.
  • Take a look at the International Chamber of Commerce (ICC) guidelines for cookie usage.
  • Read through the U.S. Federal Trade Commission’s guidance on cookies.
  • Become familiar with the specific cookie laws in place in different countries.
  • When you have a thorough understanding of the different laws and regulations related to cookies, you can move on to the next step.

Explain the applicable cookie laws in different countries

  • Research the different cookie laws for the countries your website is targeting
  • Determine which regulations apply to your website
  • Note any specific requirements for each country
  • Check for any recent changes to the laws
  • Create a document to track the applicable cookie laws for your website
  • When you are confident that you have a comprehensive understanding of the applicable cookie laws for each country you are targeting, you can check this step off your list and move on to the next step.

Discuss the implications of not having a cookie policy

  • Research and understand the implications of not having a cookie policy
  • Consider the potential risks of not having a cookie policy, such as data privacy and compliance issues
  • Understand the potential consequences of not having a cookie policy, such as a lack of trust from users or potential fines
  • Analyze the potential benefits of having a cookie policy, such as increased transparency and trust with users
  • When you have a clear understanding of the implications of having or not having a cookie policy, you can check this off your list and move on to the next step.

Explain the risks of not having a cookie policy

  • Identify what types of cookies are being used on your website
  • Explain the risks of using these cookies without user consent, such as legal ramifications, fines, and liability
  • Highlight the potential negative effects of not having a cookie policy, such as lack of user trust, loss of user data, and decreased user engagement
  • List the benefits of having a cookie policy, such as increased user confidence, better user experience, and improved data security
  • Explain the importance of having a cookie policy in place to protect the user and the website
  • Describe potential consequences of not having a cookie policy, such as legal action, fines, and reputational damage

Once you have identified the risks of not having a cookie policy, explained the potential negative effects, listed the benefits of having one, and described the potential consequences, you can check this off your list and move on to the next step.

Describe potential consequences of not having a cookie policy

  • Failure to comply with cookie laws may result in fines or other punishments
  • Consumers may be unaware of the data collection activities taking place
  • Lack of transparency with data collection activities may lead to mistrust and a negative user experience
  • Lack of a cookie policy may lead to a lack of control over data collection activities
  • Companies may miss out on opportunities to monetize cookie data

You’ll know when you can check this off your list and move on to the next step when you have adequately described potential consequences of not having a cookie policy.

Explain how to audit and review a cookie policy

  • Identify which cookies are used on the website or app
  • Create a list of cookies used on the website or app
  • Check the cookies against the list of local and regional laws
  • Check the cookies against the list of industry best practices
  • Identify any cookies that may be in violation of any local or regional laws or best practices
  • Update the cookie policy with any changes needed to ensure compliance with local/regional laws and industry best practices
  • Check that the cookie policy is up-to-date and compliant with local/regional laws and industry best practices

Once you have identified which cookies are used on the website or app, created a list of those cookies, checked them against laws and best practices, and updated the cookie policy accordingly, you can check this step off your list and move on to the next step.

Offer guidance on how to address customer questions related to cookies

  • Draft a response to common customer questions about cookies
  • Ensure the response is clear and provides the necessary information for customers to understand the use of cookies
  • Ask a colleague to review the response for accuracy
  • When you are satisfied with the response, include it in your cookie policy
  • Check off this step from your list to move on to the next step

FAQ:

Q: What are the main differences between the EU, USA and UK cookie policies?

Asked by Ryan on June 13th 2022.
A: The main differences between the EU, USA and UK cookie policies have to do with the level of disclosure required for user consent. In the EU, the GDPR (General Data Protection Regulation) requires a very high level of disclosure in order for user consent to be valid. This means that websites must provide very detailed information about what data is being collected and how it is used. In the USA, the CCPA (California Consumer Privacy Act) requires some level of disclosure, but not as much as GDPR. Finally, in the UK, there is no specific cookie law, but websites are recommended to follow ICO’s (Information Commissioner’s Office) guidelines which require user consent to be given before cookies are used.

Q: How can I ensure I am compliant with each jurisdiction’s cookie policy?

Asked by Frank on January 3rd 2022.
A: To ensure compliance with each jurisdiction’s cookie policy, it is important to familiarize yourself with their specific regulations and requirements. In the EU, for example, it is necessary to provide comprehensive information about what data is being collected and how it is being used. Additionally, it is important to obtain explicit user consent before any cookies are used. For more specific guidance, it is recommended to consult with a legal professional who specializes in data privacy laws for your jurisdiction. Additionally, you may want to consider using a cookie management software solution that can help you manage consent and keep track of user preferences in an automated manner.

Q: What should I include in my cookie policy?

Asked by Mark on March 15th 2022.
A: Your cookie policy should include a detailed description of what types of cookies your website uses, how they are used and what information they collect from users. It should also include an explanation of how users can opt-out or adjust their settings if they would like to restrict or disable cookies from your website. Additionally, you should make sure that your cookie policy complies with applicable laws (such as GDPR in Europe or CCPA in California). Finally, you should include contact details so that users can reach out if they have any questions or concerns about your use of cookies.

Q: What do I need to consider when creating a cookie policy?

Asked by Rachel on May 5th 2022.
A: When creating a cookie policy, it is important to consider a few key factors such as which jurisdictions you need to comply with (such as GDPR in Europe or CCPA in California), what types of cookies you use and how they are used, and how users can opt-out or adjust their settings if they would like to restrict or disable cookies from your website. Additionally, you should make sure that your cookie policy complies with applicable laws and provides comprehensive disclosure about what data is being collected and how it is being used. Finally, you should include contact details so that users can reach out if they have any questions or concerns about your use of cookies.

Q: Are there any other legal requirements when creating a cookie policy?

Asked by Joseph on April 9th 2022.
A: Depending on which jurisdictions you need to comply with (such as GDPR in Europe or CCPA in California), there may be other legal requirements when creating a cookie policy such as providing comprehensive information about what data is being collected and how it is being used as well as obtaining explicit user consent before any cookies are used. Additionally, it is important to keep up-to-date with changes in the law and changes in technology that may affect how cookies are used on your website. Finally, you should make sure that your cookie policy complies with applicable laws and provides comprehensive disclosure about what data is being collected and how it is being used.

Q: Can I use technical measures such as browser settings to manage cookies?

Asked by Sarah on December 21st 2022.
A: Yes, it is possible to use technical measures such as browser settings to manage cookies on your website. Most modern web browsers offer settings that allow users to control which types of cookies they allow on their device or even block all cookies completely if desired. Additionally, some browsers also offer settings that allow users to clear existing cookies from their device or delete them altogether for greater control over their data privacy preferences.

Q: What measures can I take if I don’t want my website visitors to be tracked?

Asked by David on October 30th 2022.
A: If you don’t want your website visitors to be tracked using cookies, there are several measures you can take such as providing clear information about which types of cookies are used on your website and allowing users to adjust their settings accordingly; implementing a ‘Do Not Track’ header that allows users’ browsers to send a request indicating that they do not want to be tracked; offering opt-out mechanisms so that users can opt-out of tracking if desired; disabling third-party tracking; limiting the duration of tracking; and deleting any unnecessary tracking data regularly. Additionally, you should make sure that your cookie policy complies with applicable laws and provides comprehensive disclosure about what data is being collected and how it is being used so that users understand what they are agreeing to when they consent to any tracking activity on your website.

Q: How should I handle sensitive user data when creating a cookie policy?

Asked by James on November 15th 2022.
A: When handling sensitive user data when creating a cookie policy, it is important to take extra precautions such as using strong encryption methods for storing data securely; limiting access only to authorized personnel who have been thoroughly trained; implementing access control measures for authentication purposes; regularly monitoring for any potential breaches; providing clear information about which types of cookies are used on your website; allowing users to adjust their settings accordingly; offering opt-out mechanisms so that users can opt-out of tracking if desired; disabling third-party tracking; limiting the duration of tracking; and deleting any unnecessary tracking data regularly. Furthermore, it is important to ensure that any third-party service providers who may have access to sensitive user data are compliant with applicable laws such as GDPR in Europe or CCPA in California which require explicit user consent before any personal data can be processed.

Q: What happens if I don’t comply with my jurisdiction’s laws when creating a cookie policy?

Asked by John on July 1st 2022.
A: If you fail to comply with applicable laws when creating a cookie policy (such as GDPR in Europe or CCPA in California) then you could face serious legal penalties such as hefty fines or even criminal prosecution depending on the severity of non-compliance. Furthermore, failure to comply could also result in reputational damage due to lack of trust from customers who may feel their personal data has been misused or mishandled without their knowledge or consent which could lead them not wanting to use your services anymore due to lack of trustworthiness or privacy protection provided by your company/website/service/product etc… Therefore, it is very important to ensure compliance when creating a cookie policy in order protect both yourself legally and reputationally from any potential issues arising from non-compliance with applicable law(s).

Example dispute

Suing for Violation of Cookie Policy

  • A plaintiff may raise a lawsuit if they believe that a company has violated the terms of their cookie policy.
  • The plaintiff must be able to prove that they have been negatively impacted by the company’s breach of the cookie policy.
  • The lawsuit must include evidence of the company’s violation and the damages resulting from the violation.
  • The lawsuit should reference the specific terms of the cookie policy that were violated, such as a lack of disclosure regarding the use of cookies, the types of cookies being used, or the lack of consent from the user.
  • The plaintiff must be able to demonstrate that the company’s breach of the cookie policy caused them harm, such as data loss or financial losses.
  • The lawsuit should also include a demand for compensatory damages, such as reimbursement for any losses sustained as a result of the breach.
  • If the lawsuit is successful, the company may be required to pay damages to the plaintiff, change their cookie policy to comply with the law, or both.

Templates available (free to use)

Detailed Web App Cookie Policy
Uk Cookie Policy Pecr Gdpr And Dpa 2018

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