If I'm right, it was the law of the U.K. that started it, no? It is quite inconvenient. Now we have to download all these plugins to have everybody in the world understand that when they log in to the site, that some info like their password is stored or not. So bothersome and this is all like "no duh" stuff. How dumb not to realize that your password will be stored in cookies! 🍪?!!
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Yes, I also believe that the beginning was in England.
But passwords should never be stored in clear text, at no place. Passwords should not be stored if there is no need, storing the hash is enough for checking a credential.