Introduction – What is a cookie policy
For most businesses running a website in 2025, the topic of cookies is no longer something that sits quietly on the developer’s checklist. It’s now a legal consideration, sometimes a critical one, especially when user data gets involved. These cookies, that live on a user’s browser, might look harmless in function, but the kind of data they track, store, and transmit can trigger obligations under both domestic and global data protection frameworks.
Cookies aren’t just about remembering language preferences or keeping a shopping cart intact. Many of them now power cross-platform advertising, real-time analytics, and behavioural profiling. The moment a cookie can be linked back to a specific individual, either on its own or through other identifiers, it shifts from a technical setting to a privacy trigger.
For many Indian businesses relying on third-party tools, the greater risk lies not in intentional misuse but in the lack of visibility into how deeply these tools embed data trackers. With increasing regulatory focus and user awareness, especially around cookie policies, deferring compliance is no longer a viable option.
The following sections unpack not just the legal basics, but also the commercial signals that determine whether a website needs a cookie policy, and if yes, what it should ideally cover.
What Is a Cookie Policy?
In operational terms, a cookie policy refers to a published statement or document on a website that sets out the types of cookies being used, the purpose for which those cookies are deployed, and the user’s options in terms of accepting, rejecting, or configuring them. It’s a disclosure framework, typically linked from the home page or displayed via a pop-up consent banner, that serves both transparency and legal functions.
That said, the actual contents of a cookie policy for websites will vary, depending on what kind of cookies are involved. Most platforms have a mix of essential cookies (for security, login, language settings), and non-essential cookies (such as analytics, advertising, third-party embeds). While the former category generally doesn’t invite consent obligations, the latter most certainly can, especially where user profiling is enabled.
It’s also important not to conflate the cookie policy with the website’s privacy policy. Though both documents may intersect where personal data is involved, the cookie policy is meant to zero in specifically on cookie-based activities, particularly where identifiers like device ID, location metadata, or browsing history are being collected and processed.
Where cookies touch any form of user-identifiable data, or involve third-party data sharing, a documented position becomes more than just good practice; it’s often a legal shield. A short banner with “we use cookies” won’t cut it anymore. What’s required is layered clarity, notice, description, and control.
Table: Common Cookie Categories and Treatment
| Cookie Type | Typical Use | Consent Needed | Example Technologies |
| Essential | Logins, site navigation, session security | No | WordPress session cookies |
| Preference-based | Language, layout settings | Sometimes | Locale cookie |
| Analytics / Performance | User traffic analysis, UX optimization | Yes | Google Analytics, Mixpanel |
| Marketing / Targeting | Behavioural profiling, ad conversion tracking | Yes | Facebook Pixel, Hotjar |
So, do all websites need to have this documented? The short answer: not in every case, but for most active commercial sites, particularly those operating beyond static content, the legal and commercial risk of having no cookie policy is growing. Whether viewed through the lens of user expectation or regulatory compliance, the tide is shifting, and rapidly.
Legal Basis for Cookie Policies in India
Until recently, India did not have a direct statutory requirement that websites maintain a cookie policy. However, this changed fundamentally with the passing of the Digital Personal Data Protection Act, 2023 (“DPDPA”). While the DPDPA doesn’t mention cookies per se, it creates a framework around personal data that brings many types of cookies squarely within its purview.
Under the Act, “personal data” is defined broadly. If a cookie assigns a persistent ID to a device and logs page behavior, clicks, or location trails, then it likely qualifies. And if that cookie data is then shared with ad networks or analytics platforms, the consent requirements get triggered.
When Consent Is Required
The DPDPA makes it clear that consent must be specific, informed, and capable of being withdrawn at any time. For cookies that are not necessary for a user to browse or access the service, this consent standard applies. It doesn’t matter whether the data is stored for five seconds or five years; if the cookie captures a traceable behaviour, it may qualify as “processing personal data” under the law.
A business deploying marketing cookies without active user consent could now fall foul of the statute. And that’s where the cookie policy becomes operationally important, not just as a compliance tool, but as the document that evidences what data is being collected and under what authority.
Role of the Cookie Policy in the Indian Regulatory Landscape
The compliance environment in India is converging with global norms. European regulators have long required that non-essential cookies be disclosed and user consent obtained. India is now entering a similar phase. Regulators may not yet have issued standardised notice formats, but the principles are articulated in the DPDPA and are supported by a growing body of sectoral and industry-specific guidelines.
For instance, many financial service providers and digital lending platforms have begun integrating cookie-specific disclosures into onboarding flows and app splash pages. A healthcare teleconsultation portal, for example, must disclose if third-party tools collect data that could impact a patient’s confidentiality.
Practical Thresholds: Does Your Website Need One?
To answer the broader question, do websites need a cookie policy, one has to look at three factors:
- Is personal data being processed via cookies?
- Are the cookies enabling tracking, profiling, or cross-site identification?
- Are the cookies owned by third parties or being used to monetise user activity?
If the answer to any of the above is yes, it becomes difficult to justify not having a cookie policy in place. More so, if your platform interacts with users from jurisdictions like the EU, the US (CCPA), or Southeast Asia, where cookie norms are mandatorily included in law.
Key Components of a Cookie Policy
Over the past few years, particularly with rising awareness around user data tracking, many Indian businesses have had to rethink how they present their cookie disclosures. From a legal standpoint, it’s about informed consent and structured transparency. So, the starting point always has to be: what’s being collected, why, by whom, and for how long.
A legally defensible cookie policy, especially for Indian businesses, which shall be subjected to DPDP Act compliances once in force, should include:
- a breakdown of first-party vs third-party cookies;
- the classification into functional, performance, marketing, etc;
- the specific names of third-party tools (e.g., Meta Pixel, Google Analytics);
- the exact retention periods (even approximations help); and
- and a process for users to withdraw consent at any time.
There’s also a growing trend, at least in larger platforms, to pair the policy with a live Cookie Control Panel, embedded in the footer, where users can toggle categories. This isn’t a statutory mandate yet, but it’s becoming an industry-standard mechanism to demonstrate that the “consent” collection wasn’t a one-time banner click.
More importantly, if the business is using tracking technologies across mobile web, desktop, and app simultaneously, the disclosures need to account for that overlap.
Lastly, the cookie policy has to be readable, and from a business standpoint, a transparent and well-explained cookie policy creates a solid layer of legal insulation without looking defensive.
Cookie Policy vs. Privacy Policy: What’s the Difference?
A frequently asked question by businesses is whether cookie-related disclosures can simply be embedded within the primary privacy policy. While this may be technically permissible, evolving legal standards and user expectations suggest a more nuanced and deliberate approach is now advisable.
The distinction lies in scope and specificity. A privacy policy is a comprehensive framework—it addresses all categories of personal data processed by a business, whether collected online, offline, through third parties, or during customer interactions. It covers legal bases, data retention timelines, cross-border data transfers, and mechanisms for exercising user rights. In contrast, a cookie policy serves a targeted purpose: it governs the use of cookies and similar tracking technologies, classifying them by function, detailing their use cases, and disclosing whether they are linked to identifiable user profiles. The separation of these documents not only improves transparency but is increasingly expected under emerging compliance frameworks.
For these reasons, the businesses, especially those with consumer-facing platforms, maintain a standalone cookie policy and link it directly from their banner interface. This ensures that the notice framework is clean, defensible, and aligned with user expectations.
Another reason to separate the two is drafting tone and technical detail. The privacy policy is often dense, legalistic, and structured for regulators or legal counsel. A cookie policy, by contrast, benefits from simpler explanations, visual aids (like charts or consent toggles), and plain language that even the users can grasp.
Why Your Website May Legally Need a Cookie Policy
A common oversight among the Indian companies is the belief that cookie compliance is primarily a Western obligation. While the GDPR did globalize the issue, India’s DPDPA introduced parallel consent obligations that would apply whenever personal data is processed, including cookies.
Though the DPDPA doesn’t explicitly reference “cookies,” its consent and notice requirements cover technologies that collect personal identifiers such as IP addresses, device IDs, or session tokens. Accordingly, if the website uses cookies for analytics, tracking, or personalization, a dedicated cookie policy within the privacy framework is a legal necessity.
Too often, businesses enable Google Analytics, Facebook Pixel, or session recorders like Hotjar, without realising that they trigger silent data collection before consent. Even in cases where a consent pop-up exists, the cookie policy is either missing or written in such language that fails to meet even a good-faith standard of disclosure.
This approach doesn’t just fall short of DPDPA expectations. It weakens the entire privacy and cookie compliance. Auditors, data protection boards (once appointed), and even vigilant consumers are likely to view this as careless or evasive. If the business processes user data as part of a monetisation model, whether through targeted ads, behavioural segmentation, or cross-site tracking, then the absence of a clear cookie policy is not just risky, it can be interpreted as deliberate non-disclosure.
Henceforth, if the website or app includes any tracking tools that interact with user data in a way that could identify, profile, or retarget users, then a cookie banner alone does not suffice. The business would need an actual policy, separate from the Privacy Policy, that spells out the scope, categories, purpose, and control mechanisms associated with such cookies.
Industry-Specific Considerations
Every sector doesn’t face equal exposure when it comes to cookie disclosures. The risk elevation depends on three core factors: (a) the nature of data collected, (b) who the data is shared with, and (c) the end-use of cookie-driven insights.
AdTech, Media, and Audience Platforms
If the business is in the field of advertising or publishing, whether through direct user acquisition, affiliate networks, or retargeting, then the reliance on cookies is typically more invasive than most. From a compliance standpoint, the burden is heavier.
A cookie policy operating in this space should not only disclose what cookies are used but also explain what happens to the data once it’s collected, such as if the data is shared with a third party, whether profiling is involved, or not.
Further, the consent requirements can’t rely on default toggles or passive acceptance. The compliance now increasingly demands granular controls (e.g., by purpose) and real-time withdrawal of consent.
SaaS and Platform Tools
SaaS platforms often fall into a grey area. The product is sold B2B, but the tracking occurs across individual users of that platform, usually employees or contractors. Cookies might log session durations, feature usage, or error events. Some might even record screens or store keystrokes. Now, while these are justified from a product optimisation standpoint, they still amount to personal data collection.
So, the first issue that often accrues is that of the cookie use without front-end disclosure. If the business is using tools like FullStory or LogRocket, then it would not amount to a silent service. The tools would actively be watching user behaviour, often before consent. A disclosure is needed in such a case.
HealthTech and Financial Apps
These sectors present a different challenge altogether. In such sectors, the cookie policy has to be particularly detailed around retention periods, third-party use, user control, and sensitive personal data. Consent mechanisms must be legally vetted to ensure compliance with the DPDPA. A blanket “yes/no” toggle will fail to meet the standard for informed and specific consent. Each distinct and sensitive use, such as behavioral tracking or third-party data sharing, should be accompanied by a separate, clearly worded consent request.
Compliance Challenges and Common Mistakes
While the adoption of cookie banners and tracking disclosures has increased over the past few years, a surprising number of businesses still approach the issue mechanically, often without understanding the legal nuance behind the cookie policies.
Over-Reliance on One-Line Banners
Many websites continue to display banners that simply state “By using this site, you agree to our use of cookies.” Under the consent requirements, consent must be meaningful, specific to the purpose, and revocable. A passive banner, especially one that doesn’t allow users to reject certain categories, doesn’t fulfill this standard.
Treating Cookie Notices as an Afterthought
It’s common to find websites with well-drafted privacy policies but cookie notices that seem like placeholders. Some don’t mention categories, others avoid naming third-party tools, and very few explain the underlying rationale. In reality, a cookie policy should not be relegated to generic templates. Each tool deployed on the site brings its obligations, and blanket statements won’t address those risks.
Misuse of Privacy Policy to Cover Everything
Some businesses merge their cookie notices into the Privacy Policy, believing it to be more efficient. But this dilutes clarity and makes the policy unnecessarily long. A visitor looking to understand a cookie policy should not have to scroll through unrelated sections to find it. Keeping it separate also allows easier updates and a better user experience.
Sample Format or Drafting Guidelines for a Cookie Policy
A cookie policy must be structured and drafted enough to satisfy the current data privacy rules, along with upcoming DPDPA obligations of transparency and notice. Below is a suggested breakdown of sections that such a policy should include, along with a sample language framework that businesses can adopt.
A. Recommended Table of Sections
| Clause Heading | Purpose | Sample Draft Language Snippet |
| Introduction / Scope | Clarify that the document outlines cookie practices | “This Cookie Policy explains how we use cookies and similar technologies…” |
| Types of Cookies Used | Categorise cookies (e.g., strictly necessary, analytics, etc.) | “We use first-party and third-party cookies to…” |
| Purpose of Use | Justify why each category of cookie is used | “These cookies help us understand user behavior, improve features…” |
| Cookie Duration & Control | Inform users of how long cookies last and how they can manage them | “Cookies may persist for session duration or up to 12 months…” |
| Third-Party Access | Disclose vendor scripts and data sharing practices | “We allow analytics partners to place cookies which may collect anonymised data.” |
| How to Withdraw Consent | Mechanism to disable cookies or revisit settings | “Users can withdraw consent anytime by adjusting browser settings…” |
| Updates to This Policy | Legal language on how updates are notified | “We may update this Cookie Policy from time to time, with changes posted here.” |
B. Structuring the Policy – Practical Notes
- The most common error is omitting technical classifications (e.g., session vs persistent cookies). This should be explicitly included, especially for websites using a mix of local and cloud-based scripts.
- Be transparent about cross-site or cross-device tracking. If the cookies enable tracking across multiple products or partners, this should be reflected under “Purpose of Use” or “Third-Party Access.”
- For consent requirements, the mechanism for opting out or updating preferences should be explained not only in the banner, but also within the body of the policy.
- Include a contact clause: A basic point of contact for grievances or clarifications on the cookie policy lends credibility and is advisable from a regulatory standpoint.
Frequently Asked Questions (FAQs) – What is a cookie policy
What exactly is a cookie policy?
At its simplest, a cookie policy outlines the kinds of cookies or tracking technologies used by a website, along with the reasons those tools are in place. In practice, especially under India’s evolving data protection laws, a cookie policy is expected to explain whether consent is sought, how the user can withdraw it, whether third parties are involved, and whether it affects user privacy in any measurable way. That level of transparency is not optional anymore.
Can’t we just include cookies in our privacy policy?
While it’s not technically illegal to include cookie disclosures within a general privacy policy, it’s far from best practice. From both a user experience and compliance perspective, this approach falls short. Privacy policies tend to be lengthy, infrequently updated, and rarely read in full. In contrast, a standalone cookie policy offers a clearer, more transparent solution. It simplifies updates and empowers users to make more informed choices about their data, key to demonstrating real commitment to privacy and regulatory compliance.
What does “cookie consent” really mean in India?
Under Indian law, especially with the introduction of the DPDPA, the cookie consent requirements have shifted toward greater accountability. Passive consent, where cookies are dropped even before the user agrees, is no longer defensible in many contexts. In practical terms, consent must be specific, informed, freely given, and revocable. That means the cookie banner must give users a real choice, not just an “Accept” button.
Do websites need a cookie policy even if we don’t store sensitive data?
Yes, absolutely. The nature of the data being collected doesn’t change the disclosure obligations. Whether the business is storing behavioural data, click patterns, heatmaps, or even session recordings through third-party analytics tools, the disclosure requirements in a cookie policy are a must.
Conclusion – What is a cookie policy
The regulatory landscape around website cookies has fundamentally shifted, with the passing of the Digital Personal Data Protection Act, 2023. This marks a departure from the previous era, where cookie policies were often considered optional or a mere formality. The core of this change is the DPDPA’s broad definition of personal data and consent mechanism, which now brings most forms of non-essential cookies, those used for analytics, marketing, and user profiling, squarely under its purview.
For any Indian business with an active website, the question is no longer whether to have a cookie policy, but how to draft and implement one that is legally defensible and transparent. The days of relying on a one-line banner or embedding a vague statement within a lengthy privacy policy are over. The modern cookie policy must be a dedicated, standalone document that provides clear, layered information, classifying cookies by function, detailing the purpose of their use, naming third-party vendors, and, most importantly, providing users with a real-time mechanism to grant or withdraw their consent.
Failing to adopt this proactive approach carries tangible risks. Beyond the potential for regulatory penalties, a lack of a robust cookie policy erodes user trust and weakens a business’s overall privacy posture. As global and domestic standards converge, a well-drafted cookie policy is no longer a compliance burden but a strategic asset, a clear signal of a business’s commitment to privacy and data integrity.
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