MediaTech Law

By MIRSKY & COMPANY, PLLC

Confusion in “Cookie”-Land: Consent Requirements for Placing Cookies under GDPR and ePrivacy Directive

Must a website get consent from a user before placing cookies in the user’s browser?  The EU’s ePrivacy Directive says that yes, consent from the user is required prior to placement of most cookies (regardless of whether the cookies track personal data).  But under the General Data Protection Regulation (GDPR), consent is only one of several “lawful bases” available to justify collection of personal data.  If cookies are viewed as “personal data” under the GDPR – specifically, the placement of cookies in a user’s browser – must a website still get consent in order to place cookies, or instead can the site rely on one of those other “lawful bases” for dropping cookies?

First, are cookies “personal data” governed by the GDPR?  Or to be more precise, do cookies that may identify individuals fall under the GDPR?  This blog says yes: “when cookies can identify an individual, it is considered personal data.  … While not all cookies are used in a way that could identify users, the majority (and the most useful ones to the website owners) are, and will therefore be subject to the GDPR.”  This blog says no: “cookie usage and its related consent acquisition are not governed by the GDPR, they are instead governed by the ePrivacy Directive.” (emphasis added)  Similarly with this blog.

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Encrypted Data: Still “Personal Data” under GDPR?

An interesting question is whether encrypted personal data is still “personal data” for purposes of the European Union’s General Data Protection Regulation (GDPR), and therefore making processing of that data subject to the GDPR’s library of compliance obligations.  The answer depends on the meaning of encryption: It is not enough to claim that encrypted data is “anonymized” and therefore inaccurate to conclude that it does not relate to the personal data definition’s meaning of an “identified or identifiable natural person.”

If an organization encrypts data in its care, with the encryption thereby rendering the data no longer “identified”, is it still “identifiable”?  Maybe.  If neither identified nor identifiable, then data is no longer “personal data”.

First, what is encryption?  Josh Gresham writes on IAPP’s blog that encryption involves a party “tak[ing] data and us[ing] an ‘encryption key’ to encode it so that it appears unintelligible.  The recipient uses the encryption key to make it readable again.  The encryption key itself is a collection of algorithms that are designed to be completely unique, and without the encryption key, the data cannot be accessed.  As long as the key is well designed, the encrypted data is safe.” (emphasis added)

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Do We Need to Appoint a (GDPR) Data Protection Officer?

Does your organization need to appoint a “Data Protection Officer”?  Articles 37-39 of the EU’s General Data Protection Regulation (GDPR) require certain organizations that process personal data of EU citizens to appoint a Data Protection Officer (DPO) to record their data processing activities.  Doing so is a lot more than perfunctory – you can’t just say, “Steve, our HR Director, you’re now our DPO.  Congratulations!”  The qualifications for the job are significant, and the organizational impact of having a DPO is extensive.  You may be better off avoiding appointing a DPO if you don’t have to, while if you do have to the failure to do so can expose your organization to serious enforcement penalties. 

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