Jodi Daniels, the founder and CEO of Red Clover Advisors, focuses on privacy consulting as a Women’s Business Enterprise. In a recent article, she emphasizes the importance of regular cookie audits for businesses to comply with changing regulations and consumer sentiment. Website cookies are not static and require regular monitoring to mitigate risk.
To conduct an effective cookie audit, businesses can follow five steps. First, categorize existing cookies, such as necessary, preference, statistics, and marketing cookies. It is essential to label them correctly to understand the cookie practices accurately and comply with privacy laws. Cookie consent software can streamline this process by automating cookie discovery and categorization.
Businesses should review the data privacy jurisdictions that apply to their organization after accurately inventorying their cookies. Different countries and states have varying consumer privacy requirements for cookies, such as opt-in or opt-out policies. For example, under GDPR, users must opt-in to cookies, while in the United States, many state-level privacy laws require users to opt out of cookies. California has particularly detailed regulations, including the requirement to display a “Do Not Sell/Do Not Share My Personal Information” link on the homepage.
Reexamining the purpose and efficacy of cookies is crucial in the audit process. Businesses need to evaluate the data collected by cookies, where it goes, and whether consumers are informed about it. Building, testing, and reviewing a cookie consent banner is also essential, even if not strictly required. The banner should be visible, easy to understand, and accurate, with proper language describing the purpose of cookies and linking to the privacy notice.
Documenting all findings throughout the cookie audit and reviewing the results with the team is necessary for maintaining compliance. Changes in privacy practices should be reflected in the privacy policy, ensuring accuracy and transparency in data activities. Creating internal standards and controls for cookie practices allows for a consistent approach in future audits. Collaboration between various departments involved in consumer data privacy, such as legal, compliance, marketing, HR, IT, and executive leadership, is crucial for building trust and mitigating risks.
Clear and transparent communication within the organization and with consumers can help businesses comply with privacy regulations and build trust. Following these steps and maintaining regular cookie audits can ensure that businesses align with changing regulations, consumer sentiment, and technological advancements in the digital landscape.
