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~ Spotlight On ~





            in the terminal equipment of a user (so-called cookie walls)”.
                                                              Abandoned cart emailing is a type of direct marketing – a
            The problem with cookie walls is that, in essence, acceptance of   potentially invasive one. So, if carried out too light-heartedly, it
            cookies becomes a condition to enjoy a service, and this is not   may fall short of complying with data protection laws, especially
            acceptable under the GDPR. The guidelines of the European   the European GDPR and the UK Data Protection Act.
            Data Protection Board are not legally binding but are taken
            into serious consideration by the national privacy supervising   Unless the customer has clearly consented to receive an
            authorities. It is a form of so-called “soft law”.   abandoned cart email, which is usually quite unlikely, the only
                                                              legal ground on which abandoned cart emailing seems to be
            A more acceptable consent flow mechanism is a cookie banner   consistent with the GDPR is a legitimate interest.
            (or cookie pop-up), enabling users to accept all advertising
            cookies, reject all advertising cookies or select which cookies to   Legitimate interest is the most flexible of the six lawful grounds
            accept (“cherry-picking”). Whatever consent flow mechanism   for data processing. It can be the most appropriate basis when:
            a platform adopts, this must allow users to express an   •   The processing is not required by law but is of a clear
            unambiguous indication of wishes.                    benefit to you or others; and
                                                              •   There’s a limited privacy impact on the concerned
            The European Data Protection Board, again, has specified   individual; and
            further on the matter: scrolling through a website to make   •   The individual should reasonably expect you to use their
            a cookie banner disappear does not represent a clear and   data in that way; and
            affirmative action indicating consent to the use of advertising   •   You cannot, or do not want to, give the individual full
            cookies. Moreover, this type of consent flow does not make it   upfront control (i.e., consent) or bother them with
            easy to withdraw consent to cookies.                 disruptive consent requests when they are unlikely to object
                                                                 to the processing.
            How often should we get consent? It depends. You need
            to ask for consent at the first visit and, for sure, if you have   To ascertain whether you can send abandoned cart emails
            implemented new cookies, for which consent was not given in   based on legitimate interest, you should carry out two tests:
            the first place. Many “off-the-shelf” consent mechanisms that   the necessity and balancing test. First, you must demonstrate
            use preference cookies may default to a certain expiration period,   the necessity of the processing. The burden is also on you to
            such as 90 days or so. You need to verify whether this timeframe   demonstrate that your interests are balanced with those of the
            is appropriate for your website or platform.      concerned individual.

            A quite controversial consent mechanism is based on the so-  So, by applying the principles of legitimate interest to abandoned
            called “cookie-or-pay-walls”. This is when users are given the   cart emailing, we should draw some conclusions:
            opportunity to refuse cookies, but only if they pay a fee to visit   •   It is better if the privacy policy refers to the possibility for
            the site. Our friends at the European Data Protection Board   the user to receive abandoned cart emails; and
            have stated that there is no valid consent when the data subject   •   The user must be entitled to easily opt-out from abandoned
            has no real choice, feels compelled to consent or will endure   cart emailing; and
            negative consequences if they do not consent. This interpretation   •   Abandoned cart emailing seems more appropriate for
            of the GDPR leads us to believe that cookie-or-pay-walls are not   returning customers than mere prospects; and
            fully consistent with existing EU privacy law.    •   This type of direct marketing should not be used unless
                                                                 the customer has inserted their email in the checkout
            More broadly speaking, the best consent mechanism is the one   process (so any other way to obtain the email address of the
            that enables users to expressly accept all advertising cookies,   customer should be deemed as not regular); and
            reject all advertising cookies or select which cookies to accept in   •   Browse abandonment tools are not consistent with the
            a free and unambiguous way.                          GDPR, as in this case, the user has not entered a sales
                                                                 negotiation where you obtained their email.
            Another hot topic related to user consent is “abandoned cart
            emailing”. Some merchants use abandoned cart emailing   These recommendations will help you to implement direct
            strategies to optimise sales. This happens when a customer starts   marketing strategies that are compliant with the strict
            the purchase process by adding products to the cart but then fails   requirements of EU privacy law. However, an evaluation of
            to complete checkout; then, the merchant sends an unsolicited   whether your direct marketing strategies are consistent with the
            reminder of the pending sale to the customer (or, perhaps, we   applicable law should be carried out on a case-by-case basis and
            should say “prospect” at this stage).             with the help of professional legal advice. ••

               Alan Rhode is a co-founder at Taxmen, the one-stop-shop for legal and tax services to the e-commerce industry.









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