NPC to release rules governing tracking via ‘cookies’

NPC to release rules governing tracking via ‘cookies’

THE National Privacy Commission (NPC) said it plans to release an advisory that will regulate the use of tracking mechanisms in 2024.

NPC Deputy Commissioner Leandro Angelo Y. Aguirre told BusinessWorld that obtaining consent will be the key step before using tracking mechanisms like cookies.

“But the understanding related to consent is still not that clear and it is being abused often and the tracking mechanisms or cookies… (are) a specific use case for that,” he said in an interview.

He said that websites often ask consumers to consent to their cookie policy with little explanation on a “take it or leave it” basis that denies the use of the website if users fail to give consent.

“But they don’t give you the information needed and at the same time they need you to consent to all of the different purposes related to the tracking that they do,” he added.

He said most websites need tracking to function properly. The tracking data is employed for advertising and to evaluate the site’s performance.

“Those are add ons which should be covered by a separate consent. So we want them to break that down and nudge companies to compartmentalize or unbundle all of those things,” Mr. Aguirre said.

“They can’t force consumers to take it or leave it… unless they accept all of these things when some of the things that the websites want consumers to accept are not actually necessary,” he added.

Part of the advisory, he said, will clarify the extent of the tracking that can be performed. However, he said that it is still in the works because the NPC wants to understand how companies utilize tracking.

“We want the private sector and other stakeholders to weigh in. So that’s something we’ll also do as far as the tracking mechanism is concerned, because our view as regulators may not be what’s actually happening on the ground,” he added.

The NPC seeks to partner with industry in drafting regulations that actually address the issues stakeholders face, he said.

“We want to have a balance between the rights of data subjects and at the same time we don’t want to issue regulations that will kill an entire industry. There needs to be a balance,” he added.

Asked about timelines, he said that the NPC plans to put out a call for input related to tracking mechanisms by the end of February or early March.

“I hope that the guidelines will be put out before my term ends. I’m in the mode now where I want to issue a lot of things that I feel need to be clarified before my term ends in December,” he said.

“So we hope to conduct a public consultation with enough lead time to allow us to make the necessary revisions and issue the regulation before the end of December,” he added. — Justine Irish D. Tabile