The European Union is planning to overhaul its online tracking rules, which require websites to warn visitors if they're tracking browsing activity using cookies.
The current system exempts third-party cookies. That means advertisers like Facebook and Google, whose ads install cookies on multiple sites, don't need to alert Web surfers. An EU proposal issued this week concludes that the current system of pop-up notices are ineffective, and proposes an overhaul that would exempt innocuous cookies like visitor counters, but add pretty much any third-party tracker to the list of cookies that must be disclosed.
The process of choosing which cookies to accept would change, too. The proposal would move the cookie alert system to the Web browser, similar to how integrated pop-up blockers work. That would mean no pesky cookie alerts each time consumers visit a website, and it would also make it harder for advertisers to circumvent the disclosure rules.
The new rules could upend the juiciest parts of the Internet advertising model. Not only would Facebook have to get consent for its ad trackers, but so would email services like Gmail that scan incoming messages to display contextual ads.
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The EU recognizes that its proposal could wreak havoc on advertising revenue.
"By centralizing the consent in software such as internet browsers and prompting users to choose their privacy settings and expanding the exceptions to the cookie consent rule, a significant proportion of businesses would be able to do away with cookie banners and notices, thus leading to potentially significant cost savings and simplification," according to the report. "However, it may become more difficult for online targeted advertisers to obtain consent if a large proportion of users opt for 'reject third party cookies' settings."
The new rules have to be approved by the European Parliament and each EU country, so they could change significantly before they're implemented, Ars Technica notes. Still, the proposal is a step in the right direction for protecting Internet privacy, albeit one that won't have much benefit for Americans.