In a groundbreaking update, the European Data Protection Board (EDPB) adopted new guidelines on October 7, 2024, clarifying and tightening the requirements around cookie consent and data tracking.
This regulatory change makes one thing clear: reliance on third-party cookie consent solutions is no longer just risky – it's a direct compliance issue. Yet, companies still invest in these outdated solutions.
Here’s why this is happening, the risks involved, and the alternatives available.
Privacy Standards at a Turning Point
Following a comprehensive public review, the new October 2024 guidelines emphasize the need for unambiguous, explicit, and specific user consent before any data is stored or accessed on a user's device. These changes reflect the European Union's strengthened stance on upholding privacy standards and reducing dependencies on tracking technologies that often sidestep user consent. Under these rules, pre-ticked consent boxes, implied consent, and even certain types of "necessary" tracking common in many third-party solutions are deemed insufficient.
Why Companies Persist with Non-Compliant Solutions
The widespread reliance on third-party consent solutions stems from inertia and misinformation. Many companies assume that any consent banner suffices for compliance, unaware of the deeper regulatory requirements demanding clear and specific consent mechanisms. Additionally, some believe that popular third-party vendors guarantee compliance when, in fact, recent audits reveal that many such tools fail to align with the latest legal standards.
The High Cost of Non-Compliance
Failing to adhere to these new guidelines exposes companies to severe financial and reputational risks. GDPR and ePrivacy Directive fines can reach up to €20 million or 4% of global turnover, whichever is higher. As regulators increase their scrutiny of third-party tracking practices, the likelihood of enforcement actions grows. Non-compliant organizations may face these penalties along with a significant loss of consumer trust.
The Persistence of Non-Compliant Solutions
The regulatory framework has often lagged behind technological developments, allowing ambiguities to persist. Consequently, third-party providers continue to operate despite failing to comply with the specifics of GDPR and the new ePrivacy standards. The lack of immediate, consistent enforcement has allowed these solutions to thrive, creating a false sense of security for companies that use them.
Moving to First-Party, Privacy-Focused Tools
As scrutiny of third-party tracking increases, businesses are better served by first-party consent and analytics tools. A first-party approach improves data accuracy, supports compliance with privacy laws, and establishes greater trust. Privacy-focused solutions like AesirX’s Privacy-First Foundation – which includes consent management and analytics – align with current privacy guidelines and offer a solid alternative to third-party cookies.
What Can Businesses Do Now?
To stay privacy-compliant, companies can take a few simple steps, such as:
- Audit Current Practices: Evaluate their existing tracking and consent mechanisms to identify third-party dependencies.
- Adopt First-Party Solutions: Implement tools that allow for direct and transparent user relationships.
- Commit to User Privacy: Show a genuine commitment to privacy, now a cornerstone of brand loyalty and digital trust.
In our privacy-conscious online world, relying on outdated third-party tools is not sustainable. Instead, businesses should invest in first-party, privacy-compliant solutions that build trust and meet the latest regulatory standards.
Ronni K. Gothard Christiansen // VikingTechGuy
Creator, AesirX.io
AesirX Privacy Scanner for WordPress:
Check if your WordPress or Joomla site complies with the ePrivacy Directive and GDPR by
using AesirX Privacy Scanner, which detects non-compliant elements like cookies and trackers.
