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Cookies are essential for the functionality of websites, allowing services to operate smoothly and respond to user actions. However, personal information may also be used for targeted advertising and sharing, which can involve third parties receiving your data. Users have the right to manage their cookie preferences and opt out of certain data-sharing activities, but must do so for each digital property individually.

Last updated: 12 October 2023 (BST)

What’s happening now

Currently, there is increasing scrutiny regarding the use of cookies and personal data by websites, especially in light of evolving privacy laws. Many users are becoming more aware of their rights concerning data sharing and targeted advertising. This awareness has led to a demand for clearer information on how personal data is managed and the implications of opting out of certain services.

Key takeaways

• Cookies are necessary for website functionality and user experience.
• Users have the right to opt out of targeted advertising and data sharing.
• Opting out may require action on each digital property individually.

Timeline: how we got here

The landscape of digital privacy has shifted significantly over the past few years, shaped by legislation and user demand. Key milestones include:

• 2018: The General Data Protection Regulation (GDPR) came into effect in the EU, establishing strict regulations on data usage.
• 2020: The California Consumer Privacy Act (CCPA) introduced rights for Californians regarding the sale and sharing of personal data.
• 2021: Increased focus on cookie consent and user rights across various digital platforms.

What’s new vs what’s known

New today/this week

Recent discussions have emerged around the implementation of universal opt-out tools, like the Global Privacy Control (GPC), that allow users to manage their data preferences more efficiently. This could streamline the process of opting out across multiple platforms.

What was already established

It is well-known that cookies are integral to website functionality. Users have the right to manage their cookie settings, but many still face challenges in effectively opting out of targeted advertising across different sites.

Impact for the UK

Consumers and households

For UK consumers, the ability to opt out of targeted advertising means greater control over their personal information. However, this may also result in less personalised content and potentially more generic advertising experiences.

Businesses and jobs

For businesses, compliance with privacy laws is paramount. Companies need to ensure they respect user preferences while still engaging in effective marketing strategies. This may require increased resources for data management and compliance teams.

Policy and regulation

The UK government continues to review its data protection laws post-Brexit. Upcoming consultations may lead to adjustments in how data privacy is approached, potentially affecting both consumers and businesses alike.

Numbers that matter

• 70% of UK users are concerned about their online privacy, according to recent surveys.
• Over 50% of website visitors opt out of cookies when given the choice.
• Targeted advertising can increase click-through rates by up to 50% compared to non-targeted ads.

Definitions and jargon buster

• Cookies: Small data files stored on a user's device that help websites remember user preferences and actions.
• Targeted Advertising: Advertising directed at specific users based on their online behaviour and personal information.
• Opt-Out: The choice to withdraw consent for data collection or targeted advertising.

How to think about the next steps

Near term (0–4 weeks)

Users should review their cookie settings on frequently used websites and consider opting out of unnecessary data sharing.

Medium term (1–6 months)

Businesses will need to adapt to evolving privacy regulations and consumer preferences, potentially altering their marketing strategies accordingly.

Signals to watch

• New privacy regulations introduced by the UK government or EU.
• Changes in user opt-out rates across major digital platforms.

Practical guidance

Do

• Regularly check and update your cookie preferences on websites.
• Use tools like GPC to manage your privacy preferences across platforms.

Don’t

• Ignore privacy notices when visiting websites.
• Assume that opting out of cookies will completely eliminate targeted advertising.

Checklist

• Review cookie settings on your browsers and devices.
• Understand the implications of opting out on individual sites.
• Be aware of the privacy policies of the websites you frequent.

Risks, caveats, and uncertainties

There are ongoing discussions regarding the effectiveness of current privacy laws and how they are enforced. Users may still encounter challenges in managing their personal data across different platforms, and not all companies may fully comply with regulations.

Bottom line

As digital privacy continues to evolve, UK users must remain proactive in managing their cookie preferences and understanding their rights. Awareness and action are key in navigating the complexities of online data sharing.

FAQs

What are cookies and why are they important?

Cookies are small data files that help websites function by remembering user preferences and actions, making them essential for a smooth online experience.

How can I opt out of targeted advertising?

You can opt out of targeted advertising through individual website settings or by using tools like the Global Privacy Control (GPC).

What happens if I clear my cookies?

Clearing your cookies may reset your preferences on websites, requiring you to opt out again on each site you visit.