Blab Tech
How Modern Websites Use Cookies: Types, Purposes, and Legal Requirements
Cookies—tiny data files stored on a user's device—are the backbone of modern web experiences, enabling everything from login sessions to tailored content and traffic analysis. Most cookie policies divide these into four core categories:
1. Strictly Necessary Cookies – Essential for the site to work. They enable features such as logging in, remembering a user’s settings, or redirecting after logout. Users cannot opt‑out of these cookies because they are required for core functionality.
2. Functional Cookies – Enhance usability by remembering preferences or choices made by the user, such as language selection or items added to a shopping cart. They may be set by the site itself or by third‑party services integrated into the page.
3. Performance Cookies – Also known as analytics cookies, they collect anonymous data about how visitors interact with the site. This information helps site owners identify popular pages, track user flow, and improve performance. All data collected is aggregated and does not identify individuals.
4. Sale of Personal Data / Targeting Cookies – Used by advertising partners to build a profile of a user’s interests and serve relevant ads on other sites. The policy gives users the option to opt‑out of the sale or sharing of personal information. In states such as California, Virginia, Utah, Colorado, and Connecticut, the policy explicitly references the right to opt‑out of targeted advertising.
The policy also explains that users can change their cookie settings by clicking on the category headings. While first‑party cookies can be disabled in a browser, doing so may break site functionality. Third‑party cookies, set by external advertisers or analytics providers, are often blocked by default in many browsers. Legal Context In the European Union, the ePrivacy Directive requires that websites obtain informed consent before storing non‑essential cookies on a user’s device. The policy reflects this by offering a cookie banner that asks for consent to use functional, performance, and targeting cookies.
In the United States, state‑level privacy laws such as the California Consumer Privacy Act (CCPA) and its successor, the California Privacy Rights Act (CPRA), grant consumers the right to opt‑out of the sale of personal information. The policy’s opt‑out toggle is designed to comply with these statutes.
Other U.S. states have adopted similar provisions, and the policy references the right to opt‑out in multiple jurisdictions. Industry Developments Major browser vendors have announced plans to phase out third‑party cookies to reduce cross‑site tracking. In 2024, all major browsers, except for Google Chrome, moved toward this goal. Google reversed its decision in July 2024, but the broader industry trend remains toward limiting third‑party tracking.
The policy also mentions that third‑party cookies are a key component of the online advertising ecosystem. Because they allow advertisers to track users across sites, they have become a focal point for privacy advocates and regulators. Practical Implications for Users Users who wish to maintain a fully functional browsing experience should allow strictly necessary cookies. If they prefer to limit tracking, they can disable functional and performance cookies, but this may reduce personalization and analytics features. Opt‑out of targeting cookies is available through the policy’s toggle, but users should be aware that disabling these cookies may result in less relevant advertising.
Site owners must ensure that their cookie banners clearly distinguish between essential and non‑essential cookies and provide a straightforward way for users to change preferences. Failure to do so can result in non‑compliance with EU and U.S. privacy laws. Conclusion The cookie policy described above illustrates the balance that modern websites must strike between delivering a personalized experience, gathering useful analytics, and respecting user privacy. By categorizing cookies, offering opt‑out options, and aligning with evolving legal requirements, sites can navigate the complex landscape of web privacy.
1. Strictly Necessary Cookies – Essential for the site to work. They enable features such as logging in, remembering a user’s settings, or redirecting after logout. Users cannot opt‑out of these cookies because they are required for core functionality.
2. Functional Cookies – Enhance usability by remembering preferences or choices made by the user, such as language selection or items added to a shopping cart. They may be set by the site itself or by third‑party services integrated into the page.
3. Performance Cookies – Also known as analytics cookies, they collect anonymous data about how visitors interact with the site. This information helps site owners identify popular pages, track user flow, and improve performance. All data collected is aggregated and does not identify individuals.
4. Sale of Personal Data / Targeting Cookies – Used by advertising partners to build a profile of a user’s interests and serve relevant ads on other sites. The policy gives users the option to opt‑out of the sale or sharing of personal information. In states such as California, Virginia, Utah, Colorado, and Connecticut, the policy explicitly references the right to opt‑out of targeted advertising.
The policy also explains that users can change their cookie settings by clicking on the category headings. While first‑party cookies can be disabled in a browser, doing so may break site functionality. Third‑party cookies, set by external advertisers or analytics providers, are often blocked by default in many browsers. Legal Context In the European Union, the ePrivacy Directive requires that websites obtain informed consent before storing non‑essential cookies on a user’s device. The policy reflects this by offering a cookie banner that asks for consent to use functional, performance, and targeting cookies.
In the United States, state‑level privacy laws such as the California Consumer Privacy Act (CCPA) and its successor, the California Privacy Rights Act (CPRA), grant consumers the right to opt‑out of the sale of personal information. The policy’s opt‑out toggle is designed to comply with these statutes.
Other U.S. states have adopted similar provisions, and the policy references the right to opt‑out in multiple jurisdictions. Industry Developments Major browser vendors have announced plans to phase out third‑party cookies to reduce cross‑site tracking. In 2024, all major browsers, except for Google Chrome, moved toward this goal. Google reversed its decision in July 2024, but the broader industry trend remains toward limiting third‑party tracking.
The policy also mentions that third‑party cookies are a key component of the online advertising ecosystem. Because they allow advertisers to track users across sites, they have become a focal point for privacy advocates and regulators. Practical Implications for Users Users who wish to maintain a fully functional browsing experience should allow strictly necessary cookies. If they prefer to limit tracking, they can disable functional and performance cookies, but this may reduce personalization and analytics features. Opt‑out of targeting cookies is available through the policy’s toggle, but users should be aware that disabling these cookies may result in less relevant advertising.
Site owners must ensure that their cookie banners clearly distinguish between essential and non‑essential cookies and provide a straightforward way for users to change preferences. Failure to do so can result in non‑compliance with EU and U.S. privacy laws. Conclusion The cookie policy described above illustrates the balance that modern websites must strike between delivering a personalized experience, gathering useful analytics, and respecting user privacy. By categorizing cookies, offering opt‑out options, and aligning with evolving legal requirements, sites can navigate the complex landscape of web privacy.
