This article I will let you learn how to create a frictionless cookie consent banner that keeps your website compliant with global privacy laws.
Managing your website cookie consent should be one of your business priorities. Why? Because by complying with data privacy laws, you can avoid serious financial penalties.
In this article, you’ll learn how to avoid cookie consent fines and implement a solution that balances legal compliance with user experience.
What is a cookie consent banner?
A cookie consent banner is a website pop-up that tells your website visitors how you collect and use their personal data. It also gives them control over what data they share and how much of it they share with you.
Do you need a cookie consent banner?
Almost certainly, yes. You must implement a cookie consent solution if:
- You collect data that isn’t essential to the core functionality of your website, such as data collection for website analytics, marketing, or personalization.
- Your website serves countries with data privacy laws that require explicit consent.
Why do you need to gain explicit consent?
Many data privacy laws require opt-in consent from users. This consent must be a clear, informed, and voluntary agreement from your website visitors before you can collect or process their data.
So, you should remmber: “Explicit consent is a clear, informed, and voluntary agreement from your website visitors before you can collect or process their personal data.”
Let’s take a closer look at some widely recognized and highly relevant data privacy laws:
- General Data Protection Regulation (GDPR): The European Union designed this law to give individuals more control and rights over their personal data. To comply, you must obtain user consent and provide users with detailed information on what cookies your website uses and how you will use visitors’ data.
- California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA): The CCPA and its amendment, the CPRA, give California residents control over how websites use their personal data. Like the GDPR, you must explain your use of cookies. But unlike the GDPR, which requires opt-in consent, the CCPA and CPRA only require opt-out consent options. This means you can use cookies to collect users’ data, but you must provide users with an easy way to opt out of sharing their data.
- The Data Protection Act (DPA): The United Kingdom’s DPA requires you to obtain user consent before you use non-essential cookies.
- The Personal Information Protection and Electronic Documents Act (PIPEDA): Canada’s PIPEDA mandates that you obtain cookie consent before collecting personal information.
- The Privacy Act: Australia mandates that you inform users about the personal data you collect and requires opt-out consent choices.
As data privacy concerns grow globally, many other countries are implementing similar privacy laws to protect users’ personal data. Ultimately, if any of your users are in a location that requires prior consent before you can collect data, you must:
- Fully inform users about what data you’re collecting and how you’ll use that data.
- Obtain users’ explicit agreement.
- Provide options to allow users to change their cookie preferences.
Do you need explicit consent for all cookie categories?
No, cookie consent laws don’t require consent for strictly necessary cookies. These are cookies that are necessary for the basic functioning of your website. For example, cookies that remember users’ shopping cart contents across web pages are essential for the proper functioning of an e-commerce website.
However, many data privacy laws require opt-in consent if you use non-essential cookies. These cookies provide additional functionality to your website but aren’t necessary for essential functions. Here are some common non-essential cookie categories:
- Analytics cookies that use personal data to track user behavior and traffic patterns
- Advertising cookies that track personal data across websites to deliver targeted ads and personalized content
- Functional cookies that collect personal data like language preferences and login details
What happens if you don’t gain users’ consent to use their personal data?
If you don’t obtain users’ consent before deploying non-essential cookies, there could be serious ramifications, starting with heavy fines.
For example, if you don’t comply with the GDPR, the EU’s individual data protection authorities can fine you up to €20 million ($22 million) or 4% of your global annual revenue, whichever is higher.
In another example, if you don’t meet CCPA requirements, the California attorney general can fine you as much as $7,500 per violation. In addition, there’s no cap on the total fines California can levy.
It’s important to understand that these penalties apply to business and personal websites of all sizes, with authorities imposing fines as small as a few thousand dollars and as large as a billion dollars.
To date, the 3 largest GDPR fines issued for non-compliance are:
- Meta: €1.2 billion ($1.32 billion) for violating data privacy regulations in 2023
- Amazon: €746 million ($822 million) for mishandling user data in 2021
- Instagram’s owner, Meta Platforms Limited: €405 million ($446 million) for violating children’s privacy in 2022
But that’s not all. Non-compliance with privacy laws shatters customer trust and damages your brand’s reputation. When news of fines or data breaches gets out, it will not only cost your business money but also drive previously loyal users away.
So, keep up with data privacy compliance, maintain trust with your users, and implement a compliant cookie consent banner.