Use of Cookies – New rules 
Cookies are text files that are stored on a user’s computer when they visit a website that uses them. Thereafter, the cookie sends information back to the website and can be used to monitor browsing preferences of users, e.g. types of goods searched for, pages visited and length of dwell time on each page. However, you need to be open with your customers about how you will use this information.
Since 26 May 2011, if you use cookies as part of your website you will need to tell individuals about how you are using them. In particular, you must give clear and comprehensive information about why you are using cookies and obtain their consent.
This information should be easy to understand and should tell users of the website that cookies will be used to collect and store information about them. You should also give users the opportunity to refuse the continued storage of any cookies on their computer or access to it and explain how users can turn the cookies off. There are very few circumstances where this information does not have to be provided.
From 26 May 2011, the Privacy and Electronic Communications Regulations, covering electronic marketing such as emails, faxes and text messages, will change. They include changes to the rules for cookies on websites, and introduce new powers for the Information Commissioner’s Office (ICO) to impose fines and to investigate when the law may have been broken. Many of the changes relate to the use of cookies on websites. A cookie is a small file of letters and numbers downloaded on to a device when the user accesses certain websites. Cookies allow a website to recognise a user’s device. The Regulations also apply to similar technologies for storing information. This could include, for example, Locally Stored Objects (commonly referred to as ‘Flash Cookies’).
The previous rule on using cookies for storing information was that you had to tell people how you used cookies, and tell them how they could ‘opt out’ if they objected. Many websites did this by putting information about cookies in their privacy policies and giving people the possibility of ‘opting out’.
The new requirement is essentially that cookies can only be placed on machines where the user or subscriber has given their consent.
The rules are changing because the European Directive on which the Regulations are based has been revised. UK law has to change to implement that changed Directive.
The Privacy and Electronic Communications Regulations are the rules that govern how you conduct your marketing by electronic means, such as by email or by telephone. The regulations will also affect you if you use cookies on your website or if you operate telephone or similar directories.
Key elements of the regulations are that you must obtain consent before installing cookies on a user’s machine and in some cases you must have the customer’s consent to be able to send them electronic marketing. If an individual has opted out of receiving marketing information, you are not allowed to send it.
To comply with the regulations you must:
- Ensure that you have the customer’s consent to electronically market to them by phone, fax or email.
- Identify yourself when you carry out marketing.
- Provide appropriate contact details when sending marketing material or messages so that the individual or organisation receiving the marketing can contact you. This should be a postal address, email address or Free phone number.
For telephone marketing, you must identify yourself. You must also give your address or free phone number if the person you are calling asks for it.
Related documents: Website terms and conditions – Software agreements – Computer policy
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