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Last updated
December 16, 2024
🆕  2025 U.S. State Privacy Laws: what you need to know
First-party cookies are essential for enhancing user experience on websites by remembering preferences and tracking activity. Unlike third-party cookies, they are created by the website you visit and are limited to that domain. Let's find out how these cookies work, their benefits, and their role in data privacy laws.
A first-party cookie is a small text file created and stored by a website a user visits. It tracks visitor activity for analytics, remembers user inputs and preferences (like login details), and enhances the browsing experience.
First-party cookies can’t move from one website to another; they can only track user activity on the website they are placed on. By default, websites allow first-party cookies. Otherwise, they won’t be able to identify returning users.
Common examples of a first party cookie include:
First-party cookies play a critical role in providing a seamless user experience. For instance, on an e-commerce site, first-party cookies remember items in your cart even as you navigate through various pages. Without these cookies, you would need to re-add items every time you switch pages.
Both first-party cookies and third-party cookies track user activity and collect data from consumers. But there are differences in their creation, use, and purpose.
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While first-party cookies are created by the person visiting a website, third-party cookies are installed by other programs that are separate or distinct from the site, which explains the term third-party. These are usually from scripts or tags on online advertisements placed on the site; the ads are neither owned nor controlled by the owner of the website.
Third-party cookies are found on any website that loads a third-party server’s code. This means that it can track user activity across multiple websites (even emails and social media platforms) over a long period versus first-party cookies that only live on one website or domain.
Insights collected from third-party cookies are often random and general, so businesses might find it difficult—and sometimes moot—to draw conclusions about their audiences from them. This is the opposite of first-party cookies, which base information from direct and intentional interactions with users of a business’s website.
Read more: Third-party cookies
Second-party cookies are basically first-party cookies that are used like third-party cookies. Websites that use first-party cookies exchange, sell, or transfer collected information to another business or website through data partnerships.
This data now falls under the category of second-party cookies.
Data privacy laws such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) establish rules that businesses must follow to protect the personal information of consumers. These include sections on dealing with cookies.
Under the GDPR, businesses must provide users with information on cookies and obtain opt-in consent before activating cookies on their site. Meanwhile, the CCPA mandates that businesses give consumers the option to opt out of the sale of their personal information, which can be collected by cookies enabled on their websites.
Read more: Is your cookie consent banner compliant with privacy laws?
In both laws, the definition of “personal information” doesn’t clearly define first-party cookies as the type of data that must be protected. In some interpretations, first-party cookies fall under the category of session cookies which websites only need to function and, so, don’t pose a risk to data privacy.
That said, it’s safe for businesses to assume that all types of cookies, even first-party cookies, should be included in the implementation of cookie-related regulations. That means that websites should include details of first-party cookies on their cookie message or cookie policy and obtain opt-in cookie consent (or opt-out) from users before enabling them.
Read more:Â Do I need a cookie policy?
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Data privacy laws have begun to employ stricter measures in the use of third-party cookies, which leave businesses relying on first-party cookies for consumer insight. And this isn’t at all a bad thing.
First-party cookies are actually more valuable to businesses since they draw insights directly from consumers (who are typically the target market already) intentionally engaging with their websites.
The information, then, is much more accurate and relevant. When used correctly, it can provide businesses with information that can help improve the site experience and differentiate the brand from others for a competitive advantage.
Generally, yes. First-party cookies are restricted to the website they originate from and are less likely to be used maliciously compared to third-party cookies.
‍Yes, it's best practice to include details about all types of cookies in your cookie policy and obtain user consent.
Yes, through data partnerships, first-party cookie data can be shared, making them second-party cookies.
First-party cookies are not disappearing entirely but are evolving due to privacy regulations and browser changes. They remain essential for website functionality, analytics, and personalized user experiences, albeit with increasing emphasis on user consent and data protection.
So, the key points to take away are the 3 types of cookies and how they are regulated by the data privacy laws.
First-party cookies are like atoms of information collected from your device, whether that be a laptop or phone, by a website you visit. When that cookie is exchanged or sold to another website, it becomes a second-party cookie. These two types of cookies carry personal information about an individual. Third-party cookies are imported into a website whenever that site loads code from another party’s server; these cookies pick up more general information from visitors.
Both the GDPR and the CCPA have legislated that businesses must take certain actions to protect the privacy of the personal information taken from visitors to their websites or apps. This protection includes providing information about website cookies and their purpose and gives website visitors some control over cookies and/or the use of their personal information.
Every business needs to be familiar with these two pieces of legislation since required compliance extends far beyond the state and region in which they became law.
For more information on managing cookies and how a consent management system can help, contact the privacy experts at Ketch.
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Ketch makes consent banner set-up a breeze with drag-and-drop tools that match your brand perfectly. Let us show you.
