The UK Information Commissioner’s Office (ICO) has published revised guidance on how the Privacy and Electronic Communications Regulations (PECR) apply to cookies and similar technologies.
Following two public consultations, the updated guidance incorporates changes introduced by the Data (Use and Access) Act, and also clarifies the law for cashback and rewards services.
‘Strictly Necessary’ Exemption for Cashback, Loyalty and Rewards
The updated guidance includes specific examples of cashback and reward services as meeting the ‘strictly necessary’ exemption.
Consent is not required if storing or accessing data on a user’s device is strictly necessary to deliver the cashback and rewards they have requested. The Affiliate & Partner Marketing Association (APMA) called for this clarification during the consultation processes.
It ensures that relevant businesses can confidently comply with the law and provide clear and actionable guidance to brand advertisers.
The specific function of attributing the payment or reward
The exemption applies to the specific function of attributing the cashback payment, points, reward or loyalty amount.
While the term ‘cashback exemption’ has been used across industry, the APMA wants to be clear that the exemption applies more broadly across cashback, loyalty and reward-led affiliate models, rather than cashback alone.
Collectively, these partner types account for 30% of all UK affiliate and partner marketing investment, making them the single largest category of affiliate spend.
There is still some resistance by brands and retailers to allow this exemption, so the APMA hopes that the ICO’s updated guidance provides the assurances companies need to technically implement it. Networks, agencies and platforms can advise on the best approach.
Attribution cookies
The APMA continues to maintain that attribution within the broader affiliate and partner marketing carries a low privacy risk. This would allow the sector to continue driving economic growth and build consumer-focused businesses that help British consumers save money without unnecessary regulatory friction.
Kevin Edwards, Founder and Director of APMA, commented:
“The APMA welcomes the clarification in the ICO’s guidance that cashback and reward services are considered ‘strictly necessary’ under PECR, and therefore exempt from the consent requirements. Advertisers should take notice to continue reaping the benefits of their investment in these services to deliver innovative benefits and savings to consumers.”
