What Is The Law On Cookies And Trackers?

Cookies and trackers are widely used on websites and apps to collect data for analytics, personalization, and advertising. However, their use raises privacy concerns. Indian laws and upcoming regulations focus on ensuring transparency and securing user consent before collecting or processing personal data through these technologies.

Legal Framework Governing Cookies and Trackers

Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011

• Mandates obtaining user consent before collecting sensitive personal data.
• Implies the need for transparency about data collection and use, including cookies that track personal information.

Personal Data Protection Bill (Proposed)

• Will require explicit, informed consent from users before using cookies or trackers that process personal data.
• Emphasizes purpose limitation and data minimization principles.

Consent and Transparency Requirements

• Websites must inform users clearly about cookie usage through privacy policies and consent banners.
• Users should have the option to accept, reject, or manage cookie preferences.

Types of Cookies and Consent Implications

• Strictly necessary cookies (required for site operation) may not require consent.
• Analytical, advertising, or tracking cookies that process personal data require explicit consent.

Consequences of Non-Compliance

• Penalties under the IT Act for unauthorized data processing.
• Possible consumer complaints and loss of reputation.
• Enforcement actions once the Personal Data Protection Authority is established.

Best Practices for Compliance

• Use cookie consent banners/pop-ups that are clear and user-friendly.
• Maintain detailed, accessible privacy policies describing cookie use.
• Allow users to customize or withdraw consent easily.
• Regularly audit cookie usage and data security practices.

Example

A news website uses third-party advertising cookies to track user interests but fails to notify users or obtain consent.

Legal Outcome:

• The website could face penalties for non-compliance with data privacy rules.
• It would need to implement proper consent mechanisms and update its privacy disclosures.