A directive for cookies on computers to be consented to

TAGS: Affiliate marketing

There has been much talk and speculation about EU plans to pass a regulation that requires internet users to ‘consent’ to a cookie before they are placed on computers.  Kevin Sung, Client Services Manager at Silverbean discusses what this means for affiliates.

Cookies of course are still an essential part of affiliate marketing allowing the information to be collected to enable sales to be tracked and attributed to the correct sources etc....
The Council of the EU has approved a directive amending legislation to do exactly that. Within this press release:

The important section of this document which indicates the intent to start the age of cookie-consenting is included below:

“Third parties may wish to store information on the equipment of a user, or gain access to information already stored, for a number of purposes, ranging from the legitimate (such as certain types of cookies) to those involving unwarranted intrusion into the private sphere (such as spyware or viruses). It is therefore of paramount importance that users be provided with clear and comprehensive information when engaging in any activity which could result in such storage or gaining of access. The methods of providing information and offering the right to refuse should be as user-friendly as possible. Exceptions to the obligation to provide information and offer the right to refuse should be limited to those situations where the technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user. Where it is technically possible and effective, in accordance with the relevant provisions of Directive 95/46/EC, the user's consent to processing may be expressed by using the appropriate settings of a browser or other application. The enforcement of these requirements should be made more effective by way of enhanced powers granted to the relevant national authorities.”

It would seem that according to the above a cookie must be consented to before it is placed on a computer unless it is “is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested"

Just how this is defined has still not been detailed and until it has the affiliate marketing industry has to prepare itself for at least some kind of adverse reaction.

Patricio Robles of E-consultancy states that perhaps those with the most to lose will be the businesses who operate in affiliate programs. A user may not know when they click on a link that somebody, somewhere is going to earn a commission if they proceed and make a purchase, and as the affiliate cookie certainly does not "[enable] the use of a specific service explicitly requested" (a retail website) then we can assume the user will be asked to consent to the cookie.

“If this interpretation is correct, the entire affiliate market in the EU had better watch out, although there's some question in my mind as to whether or not anyone will really bother to follow this nonsense given how ridiculous it is.” (Patricio Robles, 2009)

It has to be said that this EU directive is a long way off (proposed date April 26th, 2011) and the affiliate industry has already been working on ways of tracking sales without the use of cookies.

Those pioneering the developments in this area are networks such as Webgains and Affiliate window. We all would hope that by the time April 26th, 2011 comes round the affiliate marketing industry will have made preparations that will indeed lessen the fallout that could be possibly caused by this directive.

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