So what are cookies and why are they used?

A cookie is a file created by an Internet site to store information on your computer, such as your preferences when visiting that site. For example, if you inquire about a flight schedule at an airline's web site, the site might create a cookie that contains your itinerary.  Or it might only contain a record of the pages you looked at within the site you visited, to help the site customize the view for you the next time you visit.

Cookies can also store personally identifiable information.  Personally identifiable information is information that can be used to identify or contact you, such as your name, e-mail address, home or work address, or telephone number.  However, a web site only has access to the personally identifiable information that you provide. For example, a web site cannot determine your e-mail name unless you provide it.  Also, a web site cannot gain access to other information on your computer.

Once a cookie is saved on your computer, only the web site that created the cookie can read it.

A persistent cookie is one stored as a file on your computer, and it remains there when you close your browser. The cookie can be read by the web site that created it when you visit that site again.

There are programs out there that will help you manage all the cookies on your computer.  You will usually have to configure them the way you want them to handle cookies on your computer.  I used to recommend Cookie Wall, but too many problems with it caused me to change my mind.  I now use Webroot's Window Washer.  It provides better management of my cookies and additionally,  allows me to take back my privacy and improve my system's performance by regularly cleaning my cache, cookies, history, recent documents list, and more.  Get more information here. 

Privacy Settings and Cookies

1. In Internet Explorer, on the Tools menu, click Internet Options.
2. On the Privacy tab, move the slider up for a higher level of privacy or down for a lower level of privacy.

Click image to see full size.  Click BACK button when done. 

Note:  If you block all cookies, you will not be able to visit some web sites that require a cookie to be set.  For instance http://v4.windowsupdate.microsoft.com requires that a cookie be set before you can access the web page.

1. In Internet Explorer, on the Tools menu, click Internet Options.
2. On the General tab, click Settings, and then click View files.
3. Select the cookie you want to delete, and then, on the File menu, click Delete.
4. To delete all of the cookies on your computer, click Delete Cookies on the General tab.

Note:   Some Web sites store your member name and password or other personally identifiable information about you in a cookie; therefore, if you delete a cookie, you may need to re-enter this information the next time you visit the site.