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New Rules for Cookies

Cookies are small information files originating from visited websites which the browser stores on the user's computer. Those same websites can read the information in the files during a next visit of the user. This way the website recognizes the user and it can thus be prevented, inter alia, that the user has to submit this information again during a subsequent visit to the website. It is also possible, to a limited extent, to use cookies to track the surfing behavior of users.


In principle, the cookies are for the users' convenience. On the other hand, by means of cookies extensive information about internet users can be collected in a simple way. It is possible - for instance for advertisers - to create user profiles in a simple and unnoticed manner and - especially if the users can be identified - to infringe their personal privacy.


The applicable laws
The use of cookies is regulated in Article 5 (3) of the e-Privacy Directive (2002/58/EC), in which it is stipulated that the storage of cookies is only allowed on condition that (i) the user concerned is provided with clear and comprehensive information in accordance with Directive 95/46/EC, inter alia about the purposes of the processing, and (ii) that the user will be offered the opportunity to refuse such processing.


Incidentally, these two requirements do not apply if the sole purpose of installing the cookie is to carry out or facilitate the transmission of the communications, or if this is strictly necessary in order to provide a service requested by the user.


In the Netherlands, the provision of Article 5 (3) of the e-Privacy Directive has been implemented in Article 4.1 of the Universal Service and End Users Decree (Besluit Universele Dienstverlening en Eindgebruikersbelangen (BUDE)), which stipulates that the required provision of information must be made prior to the installation of the cookie. In this regard the BUDE clearly deviates from the Directive and prescribes that during the first visit to a website information must first be shown, for instance by means of a pop-up or lead-in page, before a cookie is installed. In practice, this poses such a hindrance that almost all websites suffice by giving information about cookies in their online privacy statement. In the Netherlands this practice seems to be tolerated.


The question is what the amended e-Privacy Directive will change in this respect. The new Article 5 (3) stipulates with respect to the installation of a cookie that the permission of the user is required, after he has been provided with clear and comprehensive information about, inter alia, the purposes of the processing.


Permission
Therefore, in order to install a cookie the user's permission is required. It appears from the preamble pertaining to the amended directive that the permission by the user can also be given by means of the settings of the browser or a different application. Apparently, in the eyes of the Commission this also meets the requirements regarding permission that apply on the basis of the general Privacy Directive (95/46/EC). On the basis of this Directive there must in any case be a freely-given, specific and informed expression of will. In concrete terms this seems to mean that when the browser of the user is set in such a manner that the installation of a cookie is accepted, the requirement of permission has been met.


As a standard almost all browsers automatically accept cookies. Therefore, a user must actively change the settings in order to ensure that cookies are refused. Many users, however, are not aware of their browser settings or how they can be adjusted. Therefore the question is whether changing or not changing the settings of a browser can indeed be regarded as a freely-given and specific expression of will of a user. If the European legislator is of the view that this is the case, this may have far-reaching consequences for the interpretation of the concept of permission under the general privacy legislation. As a result, the requirement of permission would become an empty shell. It will mainly depend on the Dutch legislator who has to implement the amended Directive and who has to substantiate the concept of permission whether it will come to this.


Information
According to the second requirement, prior to the request for permission the user will have to be provided with certain information. This provision of information must be clear and comprehensive and must also take place in a user-friendly way as much as possible. Just like under current Dutch law it now also seems to be required on a European level to first show a pop-up or lead-in page during the first visit to a website in order to meet the requirement of information before obtaining permission via the browser settings. In practice this is a method that is not very practicable and extremely unfriendly to users.


It is clear that the European legislator had little attention for practice when the new cookie rules were elaborated. Moreover, the question is whether on the basis of the new European legislation the national regulatory authority (in the Netherlands: OPTA) will now indeed take action against a practice that seemed to be tolerated in the Netherlands to date.


In that case the current practice must be adjusted and informing the user about cookies via the privacy statement is not sufficient anymore. But how can websites give substance to the requirement of permission and information in a user-friendly manner? Time will have to tell how the new rules will be implemented in the Netherlands and how practice will subsequently deal with them.


All this does not alter the fact that cookies may violate the right to respect of the personal privacy of mostly unknowing users. It would show vision if the Dutch legislator would take this into account and propose a system in which the advantages of cookies may be maintained while the risks will be limited. It is obvious that in that case there should especially be looked at possibilities to prevent the link between the cookie and an identified user.

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Martijn van Bemmel

tel: +31 (0)20 5506 653
e-mail: martijn.van.bemmel@kvdl.nl

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