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Compliance implications of the
   EU e-privacy directive
  Just when we were celebrating getting rid of IE6…
Overview
   The Revised E-Privacy Directive aka the “Cookie Law” is due to be
    enforced from the 26th May 2012.

   The synopsis is that if you are tracking users and capturing data on
    them, you MUST ask them for consent or you cannot track them. Most
    tracking is achieved via browser “cookies” (simple text files containing
    data).

   The only exceptions are for cookies which are “strictly necessary” and
    without which websites won’t work properly:
      Framework session cookies (EG a PHP session cookie)
      Shopping cart cookies (can’t have the cart forgetting what you tried to
        buy)

   Analytics cookies are not included in the “strictly necessary” definition.
The upshot
1. Companies are going to have to conduct a cookie audit to identify what
   their website is actually doing and then implement a solution to ask users
   for permission to any cookies that the company deems necessary.
2. Companies that choose to be fully compliant are going to lose a massive
   percentage of their analytics data as a large percentage of users will not
   consent to tracking. The Information Commissioners Office (UK regulatory
   body) revealed a 90% drop in analytics stats when they implemented a
   consent solution.
Reading between the lines
The ICO has said that it's looking for “positive steps” when it comes to any
enforcement policy and we should expect them to be helpful rather than
adversarial in the first few months of enforcement. With this in mind, some
companies are choosing to meet a minimum level of compliance now, with a
view to re-assessing the lay of the land later on once a consensus on best
practice has been reached by the early adopters.

There are also grumblings that although the ICO are laying down the law the
government hasn’t yet really had its say, instead commented on the need for
browser vendors to provide a solution.
http://bit.ly/H9ZjxL

Basically, the implementation of the law is a mess and should we sit tight and
see what happens?
Reading between the lines
With this in mind and the fact that enforcement is pretty unlikely to happen
immediately, the following approaches have all been mooted as perfectly
valid, depending on the companies sensitivity to adverse PR if any sort of
story were to arise.

   Baby steps: Do a cookie audit and update the privacy policy with friendly
    information about the cookies being used. (Not compliant, but a “positive step”)

   The fifty per cent: Remove all cookies except for analytics, adopt clear iconography
    advising which remaining cookies are used and link to an updated privacy policy. (Not
    compliant, but arguable – and many companies will be arguing!)

   Full compliance: Cookie audit, updated iconography / privacy policy and a solution
    that tests for user consent for cookies that are not strictly necessary

The end decision is definitely a “personal” one, based on the ethos of the company
involved and their attitude to risk. (And their users)
Reading between the lines
On top of all this, and rather intriguingly, the ICO has left a small door open
on analytics cookies (through which everyone is stampeding).

  “Provided clear information is given about their activities we are
highly unlikely to prioritise first party cookies used only for analytical
         purposes in any consideration of regulatory action.”

IE – “They are still illegal, but we’re unlikely to come down on you for them”
http://bit.ly/HAhBIq
The detail..
“Strictly Necessary”
The directive contains 2 concepts:

   Strictly necessary
    Cookies without which websites cannot operate. EG shopping carts can reasonably be
    expected by the user to remember previous items the user has selected to purchase.
    Without remembering this, the cart is useless and the user journey fails.

   Informed consent
    For all other purposes – you have to ask the user whether they are OK with you
    tracking them for this purpose.

Strictly Necessary                           Informed Consent

Load balancing                               Analytics

PHP Session                                  Advertising networks

Shopping basket                              User preferences EG “Welcome back John”
1st party vs 3rd party
The type of cookie being set also impacts on this, especially those cookies
placed by sites other than the one the users is browsing.

   1st party cookies are cookies set by YOUR website
   3rd party cookies are set by other sites (EG Google Adwords) to track
    users as they browse from site to site. These are typically advertising
    cookies.


                           1st Party                   3rd Party

Strictly Necessary         No consent required         n/a

Consent required           Consent granted once, can   Have to ask for consent
                           keep the setting stored     each time a user visits the
                           indefinitely                site
Compliance step 1
Audit the cookies the site is currently setting and establish which are 1st and
3rd party along with what fits the description of strictly necessary.
Compliance step 2
Update your privacy policy to contain clear information on what cookies you
would like to set, what they do and where the information goes.

                                                  •   Some sites have created
                                                      whole “cookie” related
                                                      sections, rather than
                                                      putting everything into
                                                      the existing privacy policy.

                                                  •   The ICO are keen that
                                                      the wording is in plain
                                                      English, as the whole
                                                      idea of the law is help
                                                      users make an informed
                                                      choice about their privacy.
Compliance step 3
Implement a system to get consent from the users:
 It should link to the information on your site about cookies and
  explanations of what you do with the data
 It should have a method of asking users for their consent for you to track
  them.

Importantly it also needs to be:
 Obvious and friendly enough to encourage as good a click rate as possible
 Intelligent with regard to 1st and 3rd party cookies
Compliance workflow
                                                    User Arrives




                     Repeat visitor                    Strictly
                                                                         New user or
                      with consent                   Necessary
                                                                         no consent
                     cookie present                  cookies set




                        3rd party
                      cookies need
                         setting
                                                 Consent solution
                                                presented on page
                                                       load                            At this point it’s not
                                                                                       clear whether the best
                                                                                       solution is to “nag”
                                                                                       the user on every
     1st and 3rd party                                                                 page. The problem is
                                                                       User
      cookies set as                   User
                                                                    declines or
                                                                                       that to avoid doing
  appropriate along with              accepts                                          so… you need to set a
                                                                     ignores
    “consent” cookie
                                                                                       cookie!
Solutions:
Status Bar - Top                              Status Bar - Bottom




Pros – Imposing and in the eyeline but not   Pros – Not obstructive, the user can
obstructive, the user can continue to        continue to browse, still very obvious
browse.
                                             Cons: - Can be ignored, not in the eyeline
Cons: - Can be ignored                       on taller pages unless it floats over content.
Solutions:
Modal Overlay                             Gutter Widget




Pros – Very imposing, user cannot pass    Pros – Can be nicely designed, floats to
without making a choice                   remain in users eyeline, 3rd party script
                                          already exists
Cons: - Very obstructive, might lead to
higher bounce rate from the site          Cons: - Too easy to ignore, overlays content
                                          on smaller screens, not much use for
                                          mobile.
Server-side analytics
Rather than relying on cookies and javascript, you let the webserver itself gather data on
the user from the PHP process or server logs. This could also be against the law although
there appears to be some confusion on this matter still.

Pros
 Some form of analytics can be kept live to inform business decisions

Cons
 The available solutions are not as advanced, they don’t track nearly so much data or
   enable you to have advanced functions such as funnels or goals and you can’t track
   repeat users.
 Has a cost implication for implementation, even if the solution itself is open-source.
 Adds extra load to the webserver
 Cannot be installed on some hosting environments
Sampling via Google Analytics
   Even if there is a 90% drop, the remaining 10% is still a representative sample of
    your user base.
   Statistics for the whole can be inferred from this sample.
   It is not clear though whether this 10% would be “engaged” with your company
    already – IE whether the sample is skewed.
A/B Testing
There is currently very little / no public data on the effects of the various
types of solution on user interactions with websites. There is certainly no best
practice as yet and there are various organisations competing to try and come
up with a standard.

Eventually a standard will emerge, or the issue will be solved by the browser
vendors (Which is the argument for the “reading between the lines” approach
to compliance in slide 4).

In the meantime the very best approach would be to test the implementations
against each other and gather hard data on which works best for the users of
YOUR site.

A/B testing is cheap to conduct, but the cost will include having to develop at
least 2 compliance solutions initially.
Final Consideration
Whatever your company decides to do, comms teams should be aware of the
company policy, especially if non-compliance is followed, as there could be
incoming traffic on this subject.
Further reading
Latest state of play:
 http://econsultancy.com/uk/blog/9453-econsultancy-s-solution-to-eu-e-
   privacy-directive-compliance
 http://www.cookielaw.org/blog.aspx
 http://blog.silktide.com/

Implementation examples
 http://db.tt/yYc182rv (PowerPoint Deck)
 http://bt.com (Go to bottom right corner and click on “Cookies”)

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Cookie Law - implications of the EU privacy directive

  • 1. Compliance implications of the EU e-privacy directive Just when we were celebrating getting rid of IE6…
  • 2. Overview  The Revised E-Privacy Directive aka the “Cookie Law” is due to be enforced from the 26th May 2012.  The synopsis is that if you are tracking users and capturing data on them, you MUST ask them for consent or you cannot track them. Most tracking is achieved via browser “cookies” (simple text files containing data).  The only exceptions are for cookies which are “strictly necessary” and without which websites won’t work properly:  Framework session cookies (EG a PHP session cookie)  Shopping cart cookies (can’t have the cart forgetting what you tried to buy)  Analytics cookies are not included in the “strictly necessary” definition.
  • 3. The upshot 1. Companies are going to have to conduct a cookie audit to identify what their website is actually doing and then implement a solution to ask users for permission to any cookies that the company deems necessary. 2. Companies that choose to be fully compliant are going to lose a massive percentage of their analytics data as a large percentage of users will not consent to tracking. The Information Commissioners Office (UK regulatory body) revealed a 90% drop in analytics stats when they implemented a consent solution.
  • 4. Reading between the lines The ICO has said that it's looking for “positive steps” when it comes to any enforcement policy and we should expect them to be helpful rather than adversarial in the first few months of enforcement. With this in mind, some companies are choosing to meet a minimum level of compliance now, with a view to re-assessing the lay of the land later on once a consensus on best practice has been reached by the early adopters. There are also grumblings that although the ICO are laying down the law the government hasn’t yet really had its say, instead commented on the need for browser vendors to provide a solution. http://bit.ly/H9ZjxL Basically, the implementation of the law is a mess and should we sit tight and see what happens?
  • 5. Reading between the lines With this in mind and the fact that enforcement is pretty unlikely to happen immediately, the following approaches have all been mooted as perfectly valid, depending on the companies sensitivity to adverse PR if any sort of story were to arise.  Baby steps: Do a cookie audit and update the privacy policy with friendly information about the cookies being used. (Not compliant, but a “positive step”)  The fifty per cent: Remove all cookies except for analytics, adopt clear iconography advising which remaining cookies are used and link to an updated privacy policy. (Not compliant, but arguable – and many companies will be arguing!)  Full compliance: Cookie audit, updated iconography / privacy policy and a solution that tests for user consent for cookies that are not strictly necessary The end decision is definitely a “personal” one, based on the ethos of the company involved and their attitude to risk. (And their users)
  • 6. Reading between the lines On top of all this, and rather intriguingly, the ICO has left a small door open on analytics cookies (through which everyone is stampeding). “Provided clear information is given about their activities we are highly unlikely to prioritise first party cookies used only for analytical purposes in any consideration of regulatory action.” IE – “They are still illegal, but we’re unlikely to come down on you for them” http://bit.ly/HAhBIq
  • 8. “Strictly Necessary” The directive contains 2 concepts:  Strictly necessary Cookies without which websites cannot operate. EG shopping carts can reasonably be expected by the user to remember previous items the user has selected to purchase. Without remembering this, the cart is useless and the user journey fails.  Informed consent For all other purposes – you have to ask the user whether they are OK with you tracking them for this purpose. Strictly Necessary Informed Consent Load balancing Analytics PHP Session Advertising networks Shopping basket User preferences EG “Welcome back John”
  • 9. 1st party vs 3rd party The type of cookie being set also impacts on this, especially those cookies placed by sites other than the one the users is browsing.  1st party cookies are cookies set by YOUR website  3rd party cookies are set by other sites (EG Google Adwords) to track users as they browse from site to site. These are typically advertising cookies. 1st Party 3rd Party Strictly Necessary No consent required n/a Consent required Consent granted once, can Have to ask for consent keep the setting stored each time a user visits the indefinitely site
  • 10. Compliance step 1 Audit the cookies the site is currently setting and establish which are 1st and 3rd party along with what fits the description of strictly necessary.
  • 11. Compliance step 2 Update your privacy policy to contain clear information on what cookies you would like to set, what they do and where the information goes. • Some sites have created whole “cookie” related sections, rather than putting everything into the existing privacy policy. • The ICO are keen that the wording is in plain English, as the whole idea of the law is help users make an informed choice about their privacy.
  • 12. Compliance step 3 Implement a system to get consent from the users:  It should link to the information on your site about cookies and explanations of what you do with the data  It should have a method of asking users for their consent for you to track them. Importantly it also needs to be:  Obvious and friendly enough to encourage as good a click rate as possible  Intelligent with regard to 1st and 3rd party cookies
  • 13. Compliance workflow User Arrives Repeat visitor Strictly New user or with consent Necessary no consent cookie present cookies set 3rd party cookies need setting Consent solution presented on page load At this point it’s not clear whether the best solution is to “nag” the user on every 1st and 3rd party page. The problem is User cookies set as User declines or that to avoid doing appropriate along with accepts so… you need to set a ignores “consent” cookie cookie!
  • 14. Solutions: Status Bar - Top Status Bar - Bottom Pros – Imposing and in the eyeline but not Pros – Not obstructive, the user can obstructive, the user can continue to continue to browse, still very obvious browse. Cons: - Can be ignored, not in the eyeline Cons: - Can be ignored on taller pages unless it floats over content.
  • 15. Solutions: Modal Overlay Gutter Widget Pros – Very imposing, user cannot pass Pros – Can be nicely designed, floats to without making a choice remain in users eyeline, 3rd party script already exists Cons: - Very obstructive, might lead to higher bounce rate from the site Cons: - Too easy to ignore, overlays content on smaller screens, not much use for mobile.
  • 16. Server-side analytics Rather than relying on cookies and javascript, you let the webserver itself gather data on the user from the PHP process or server logs. This could also be against the law although there appears to be some confusion on this matter still. Pros  Some form of analytics can be kept live to inform business decisions Cons  The available solutions are not as advanced, they don’t track nearly so much data or enable you to have advanced functions such as funnels or goals and you can’t track repeat users.  Has a cost implication for implementation, even if the solution itself is open-source.  Adds extra load to the webserver  Cannot be installed on some hosting environments
  • 17. Sampling via Google Analytics  Even if there is a 90% drop, the remaining 10% is still a representative sample of your user base.  Statistics for the whole can be inferred from this sample.  It is not clear though whether this 10% would be “engaged” with your company already – IE whether the sample is skewed.
  • 18. A/B Testing There is currently very little / no public data on the effects of the various types of solution on user interactions with websites. There is certainly no best practice as yet and there are various organisations competing to try and come up with a standard. Eventually a standard will emerge, or the issue will be solved by the browser vendors (Which is the argument for the “reading between the lines” approach to compliance in slide 4). In the meantime the very best approach would be to test the implementations against each other and gather hard data on which works best for the users of YOUR site. A/B testing is cheap to conduct, but the cost will include having to develop at least 2 compliance solutions initially.
  • 19. Final Consideration Whatever your company decides to do, comms teams should be aware of the company policy, especially if non-compliance is followed, as there could be incoming traffic on this subject.
  • 20. Further reading Latest state of play:  http://econsultancy.com/uk/blog/9453-econsultancy-s-solution-to-eu-e- privacy-directive-compliance  http://www.cookielaw.org/blog.aspx  http://blog.silktide.com/ Implementation examples  http://db.tt/yYc182rv (PowerPoint Deck)  http://bt.com (Go to bottom right corner and click on “Cookies”)