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The Ultimate Cookie Compliance Guide for Small Business

When someone visits a website, small text files known as cookies are saved on their computer or mobile device.

Cookies are used for many things, like storing user preferences, tracking browsing activity, and showing targeted ads.

Cookies may be helpful, but they may also cause privacy issues.

Users have the right to control whether their data is collected and to know how it is being used.

The process for obtaining users’ consent before installing tracking cookies on their devices is known as cookie compliance.

This is crucial for ensuring user privacy and complying with data privacy regulations, such as the California Consumer Privacy Act (CCPA) and the General Data Protection Regulation (GDPR).

With this blog, discover the concept of cookie consent management, its significance, and how to implement it on your website.

Learn about the types of cookie consent management and best practices for protecting user privacy and complying with data protection laws.

What is cookie compliance?

Solutions for consent management give users of your website the option to decide what data they wish to share with you.

Consent management has become crucial for websites and apps that use cookies and other trackers to collect data.

This is because data privacy rules mandate that apps and websites obtain users’ consent before using cookies and other trackers to collect data from them.

Most privacy rules require websites to obtain user consent, track it, and use it responsibly.

Additionally, it explains to visitors how and why your information is collected and used.

A Consent Management Platform (CMP) software program is a tool for managing consent.

You should be informed that violating consent management could result in financial penalties.

Significant fines have been imposed for violating data protection regulations, particularly the GDPR and the ePrivacy Directive.

The Cookie Law (ePrivacy Directive) was the first EU regulation governing the usage of cookies and other trackers and processing personal data from website visitors within the European Union.

2002 saw the enactment of the Cookie Law, which was later revised in 2009.

It supplements the General Data Protection Regulation (GDPR).

To protect the right to privacy of users of websites, the Cookie Banner Law allows them to accept or reject cookies from companies that collect, store, and process their data to protect their right to privacy.

The ePrivacy Directive requires cookie consent before using cookies.

This is why you must install a Cookie Consent banner on your website so that users from the EU can choose whether to consent to unnecessary cookies that process users’ data.

Types of cookies

Cookies come in two different types: first-party and third-party.

The website that the user is presently visiting creates first-party cookies.

These cookies improve the performance of the website and give users customized experiences.

Some first-party cookies are considered strictly necessary and essential for the website’s functioning.

The other websites the user visits create Third-Party Cookies.

The most common usage for these cookies is in marketing.

They can collect information for analytics purposes, target advertisements, and track user behavior.

Privacy regulations strictly regulate the use of cookies and cookie consent, managed through cookie consent management.

It’s the cookie consent manager’s role to treat first-party cookies and third-party cookies differently.

Top Cookie Compliance Regulations

1. GDPR Cookie Consent Management

The General Data Protection Regulation (GDPR) applies to businesses that operate in the European Union (EU) or collect data from consumers within the EU.

Obtaining explicit cookie consent (or an opt-in option) from website visitors is crucial to the GDPR’s cookie regulations.

This implies that accepting cookies from a website requires a user to perform an affirmative, positive action, such as clicking a box or doing something similar.

Merely informing users about the cookies is not sufficient.

2. CCPA Cookie Compliance

The California Consumer Protection Act (CCPA) must be followed by any business based in or has its customers in California.

Implied consent to cookies is sufficient under the CCPA; therefore, users’ devices may have cookies set by default.

Users must act, inform websites about their preferences, and stop setting up cookies.

The CCPA requires websites to allow consumers to opt out of having their personal information sold. This is crucial.

Websites must have a clear “Do Not Sell or Share My Personal Information” button or link where users can request to opt out of having their data sold to third parties or receive targeted advertisements.

Why is Cookie Compliance important?

The management of cookie consent is essential for the following primary reasons:

· User privacy: Users have the right to know if their data is collected and how it is being used.

· Data compliance: Organizations must abide by regulations about data privacy, including the CCPA and the GDPR.

· User trust: Customers are more inclined to trust companies that give them control over their data and are transparent and honest about how they collect it.

How to implement Cookie Compliance?

Businesses can use the following steps to implement cookie consent management in their companies:

1. Identify the tracking cookies of your website. You can scan your website for tracking cookies using tools like PrivacyPillar.

2. Make a banner with cookie consent. Users should be allowed to consent to or opt out of data collection by the cookie consent banner, which should also provide information about the different tracking cookies used on your website.

3. Set up a platform for managing consent, also called a consent management platform (CMP). It is a software tool that can help you manage the cookie consent on your website.

Cookie Consent Management Best Practices

Below are some of the best practices for cookie consent management:

· Give information about cookies, types of cookies, and why they are used.

· A cookie consent banner should ask for consent from the user and allow them to accept or reject cookies.

· Users should be allowed to withdraw their consent at any point in time. It should be as simple to reject cookies as to accept them.

· The cookie consent banner should be easy to locate and visible to the users. It needs to be accessible on every page of the website.

· There should be an option in the cookie banner that allows website users to choose from the types of cookies.

· If a user disagrees with cookies being used on your website and the collecting of their data, do not restrict them from using your website.

· Review and update your cookie policy regularly to ensure it complies with evolving privacy laws.

· Regarding consent management, the ideal approach is to use a platform. To keep your website and apps aligned with the GDPR and other regulations, you outsource your website compliance to a professional with a large team.

Cookie Consent Management Tools

Managing cookie consent can be challenging since websites may have millions of users, each with varying preferences about how cookies and personal data are used.

Therefore, an automated cookie consent management tool is a must to handle the process efficiently.

Consent Management Platforms (CMPs), an automated tool, are one way to accomplish the most efficient cookie consent management.

Website visitors’ cookie consent to use their data can be obtained and stored using the Consent Management Platform.

The following features are essential for a good CMP:

· Cookie Banner

It should be possible for CMP users to design a Cookie Banner that matches their websites.

· Cookie Scanner

A tool for scanning webpages for cookies and generating a cookie declaration table should be included in the CMP.

· Consent Recording

The CMP must maintain complete records of every consent obtained from a person.

· Consent Administration

Centrally managing and organizing consents and cookie banners should be allowed by the CMP.

· Using multiple platforms

The CMP should allow the management of cookie banners through all consent collection platforms like websites, applications, and others.

· Integrating with marketing platforms

Marketing platforms and other third-party channels for consent collecting should be integrated with the CMP.

· Compliance with privacy regulations

The CMP should offer cookie management solutions that comply with sufficient privacy rules.

Given that different countries have different privacy laws, it is ideal for the CMP to include geo-targeting functionality.

Additionally, it must always be able to show compliance for a particular individual.

· Control over data privacy

Through CMPs, every website user should be able to view all the data collected about them, who is collecting it, and with whom it is exchanged or sold.

· Revocation of consent

Any person should be able to revoke their consent at any time for any data collection and usage purpose through the CMP.

· Automated consent management

All procedures, including the creation and collection of Cookie Banners and the management and storage of user consent, must be automated by the CMP.

One of the greatest consent management platforms available in the market is PrivacyPillar CMP.

Is there a need for cookie consent management on my website?

Users’ consent to cookies must be obtained if your website uses tracking cookies. Cookie consent is not required for cookies that are strictly necessary.

You require consent management for your website because most websites use cookies other than those that are strictly necessary.

Consent management is required if you use third-party tools like Google Analytics or similar statistics tools for website statistics, as these tools use Third-Party Cookies.

For the same reasons as above, you also require a consent management platform for your website if it contains embedded content, such as social media buttons or YouTube videos.

Also, most privacy regulations require cookie consent management.

There may be penalties if privacy laws are violated.

For example, an organization that violates the GDPR may be fined up to €20 million, or 4% of its yearly global revenue.

Noncompliance with the CCPA may result in civil penalties of up to $2500 for each violation.

These fines might go up to millions of dollars if a website has a large user base.


In conclusion, most data privacy laws mandate cookie consent management.

To comply with the GDPR, CCPA, and other privacy legislation, cookie consent management is required.

Before setting cookies on users’ devices or collecting any user data, websites must get their consent to use cookies.

Website owners can ensure compliance with the privacy requirements by complying with the cookie consent management best practices described above in this article.

The tips above should be considered when selecting a cookie consent management platform.

PrivacyPillar is that one CMP that provides you with all your data privacy compliance solutions in one place.