Updated: May 8
Table of Content:
Cookie Banner: Why do you Need One?
How does a Cookie Banner work?
Cookie Compliance Software: Build or Buy?
Cookie Banners and Global data privacy laws
Comply with the Cooke Law: What if you don’t?
Cookie Consent Management: Your businesses’ compliance expert
Adzapiers’ Consent Management Platform will do it all.
Do you know how much a cookie banner is worth?
Facebook's parent company, Meta, was slapped with a fine of over $400 million by the Irish Data Protection Commission (DPC).
Facebook didn't take users' consent with the cookie consent banner and instead strongarmed them into accepting targeted ads. Facebook tried to bypass consent by referring to ads as a part of "services" that it contractually owes the users. This violated the EU's privacy laws of unlawful consent for ad targeting and data handling practices.
Meta has been ordered to pay two fines– one is for the violations of the European Union's General Data Protection Regulations or GDPR, which amounts to 210 million Euros ($222.5 million), and the second is for Instagram violating the same law amounting to 180 million Euros ($194.5 million).
So much so for just not using a cookie banner!
Well, this is something your business cannot afford. Understanding what a cookie banner is crucial to success!
Cookie Banner: Why do you Need One
Cookie Banner has come a long way! Previously, Cookie banners were used by the website as push notifications, with an option to accept or reject, informing users about their use of data, which we can all agree, we never read into it. Since the 2018 GDPR EU Cookie Law was introduced, it has changed the process completely.
The Internet is evolving, so data privacy regulation ensures that everything is in check! That’s where the term “Cookie Consent” drives; now, the GDPR Cookie Law drives the power back into the users’ hands to control their data, with Consent. And to access that consent for business needed a Cookie Consent Banner, which gives users control and your business consent to process the data further.
After EU's GDPR, the businesses’ ability to access user data without consent, was greatly affected. It became mandatory for companies to comply with the cookie law and inform the user clearly and precisely of the banner's contents in a manner that defines the purpose of this cookie and the trackers to be used. A cookie banner is essential for the user as it will help them to filter out what kind of trackers they want to use:
There are some significant categories of Cookies that are used:
Functional or Performance Cookies
These are more or less the most noted categories businesses include in their cookie banner.
No cookie banners. No advertising.
Your business needs a cookie banner. Why?
Well, it makes you look like a responsible leader in your niche or industry and helps you to build trust with your users. They trust you as it becomes clear that you are transparent about how and what type of cookies and trackers you use on your website.
On LinkedIn about the value of trust and its correlation to business profitability. More than 62% of people say they will do business with companies they trust.
Now that's huge. It's not about price and even the product anymore. It is about how you treat people. Businesses need to expand on authenticity in their business model to expand their profits.
A company that collects the personal data of people who are the subjects of data privacy laws like GDPR/CCPA/VCDPA through cookies but do not ask for the user's consent.
Now, these privacy laws can file lawsuits as you violated the cookie law. You will be fined heavily, but that's just one point. The real damage occurs to your reputation.
Fines can be paid, but not business reputation and customer trust. As an organization, you: don’t want to find your business on the wrong side of the law: do you?
EU cookie law
The ePrivacy directive is the EU's first legislation regulating the usage of cookies and trackers and how businesses collect, process, and share/sell the personal data of European citizens. ePrivacy directive is commonly referred to as the Cookie Law or cookie consent law, as cookies are the most common method through which personal data is collected.
Other technologies also regulated by ePrivacy Directive are Flash and HTML5 local storage, which are used to collect personal data.
The ePrivacy directive, or the cookie law, was enacted in 2002 and was later amended in 2009. Along with the EU's GDPR, the ePrivacy directive makes its name in the world's strictest data privacy regime. The cookie law requires businesses to obtain exclusive consent from website users before cookies are activated. The whole purpose is to safeguard consumers' privacy rights by allowing the users to accept or reject the consent for businesses to collect and process their data.
As the EU's cookie banner law is an ePrivacy directive and not a Regulation, it can be implemented by each European Union member state enforces it concerning its national policy. Depending on the different countries, the requirements can be slightly different, but all must follow the directive's provisions. A separate European data protection board has been set up by the EU regulators, consisting of representatives from all national data protection authorities, which will be responsible for the overall guideline, interpretation, and implementation of the EU cookie law.
The EU couldn't pass the privacy Regulations in 2018, but it is scheduled to be finalized shortly. This updated regulation will have broader coverage, like addressing browser fingerprinting similarly to cookies. It will create stricter protections for metadata and include other communication methods like WhatsApp, Tinder, etc.
Cookie Banner and Cookie Consent Banner
The answer to this depends upon the applicable privacy law.
Some privacy regulations around the world have different requirements to meet cookies. Some want the business to notify users of cookies through a cookie banner.
But when a data privacy law wants enterprises to obtain the explicit consent of the user, then that is called a cookie consent banner. A cookie consent banner is a simple notification asking the user to either accept or reject the usage of cookies on their devices.
Apart from that, a cookie consent banner must give the user the option to change the preference and know more about what cookies will be used, for example, performance cookies, analytical cookies, advertising cookies, and much more. At the same time, a cookie banner can notify the user about the type of cookies used and get implied consent.
Cookie Banner with Google Consent Mode
Google introduced its Consent mode solution in September 2020, a beta feature to help advertisers, especially in the European economic area and the United Kingdom, to lessen the gap between privacy and advertisements.
Advertisers need to strategize in a way that will help them build an effective ad campaign and profitable conversion while respecting the users' privacy consent choices.
Simply put, Google consent mode will allow users to adjust how google tags behave with their user's consent status. Websites can specify for what purpose the consent has been given, i.e., analytical or advertising cookies. Read our Support guide to understand how easily Adzapier's CMP integrates with Google consent mode.
How Does a Cookie Banner Work?
So, the most practical way to ask for consent is through a cookie banner. Though banners are not necessarily mentioned or required by the data privacy laws, the best UI and UX practices suggest that banners might be a perfect way to get more opt-ins.
There are different laws, so additional requirements are required to design a cookie consent banner.
1. Some laws need explicit consent for the user, which requires a suitable cookie banner with "Yes/No" options and other settings to change the preferences.
2. Some require you to notify the user of the cookies and that you are using them. This is more of an implied consent.
3. And some don't require you to notify the user of the cookies being used.
But suppose businesses, who are either operating in or targeting people who are the subjects of Data privacy laws, are found guilty of violating these privacy laws. In that case, they can be fined up to millions depending upon the size of their business.
Integrating a Cookie Banner on Website
If your business receives visitors from places with an active data privacy law and makes it mandatory to get users' consent, then you need to use the Cookie consent banner. Well, not all cookie banners are the same. There are slight but significant differences in terms and conditions, pricing, and compliance.
We'll examine whether your website should use free or paid cookie consent banners.
There are different ways to have a cookie consent banner on your website.
1. A custom-built pop-up that can be integrated with a code or a plugin
2. Integrated your website with Adzapier’s Cookie consent management
Integrating Cookie Consent in Mobile Apps
In-app consent or Mobile App Consent is gathering users' consent the same way that websites do, including how apps collect, process, and share/sell personal data with third parties.
Companies develop mobile solutions and deliver mobile-first strategies that respect the user's privacy. It is mandatory by the GDPR and CPRA and will become a major provision in the upcoming data privacy laws worldwide.
Here's an overview of how businesses take measures to comply with global regulations:
Companies must provide users with a clear and specific message about what information they do and do not want to share with third parties. Give users an option to adjust their preferences in your app. Through the mobile preference center, users can choose the consent settings that they are comfortable with while maintaining mobile app compliance.
To successfully comply with mobile consent requirements, businesses must collect consent during the first use of the app. Organizations and publishers can provide detailed information about the types of data collected and give users the ability to consent.
Provide context to the user and only ask for consent when you need it. Some app developers and user experience professionals prefer to have more contextual requests by asking for consent only when it's necessary to comply with privacy requirements in global regulations.
Free Cookie Consent Banner
The only real advantage of having a free cookie consent banner is that you don't have to pay anything. But there are many flaws in using a free cookie banner that you must be aware of:
Not compliant with Data privacy laws such as GDPR, CCPA, CPRA, and more
No Compliance Workflows
Your Consent is at risk of the breach so, so your data
No DSAR, & No Consent Preference!
No auto cookie blocking feature, which is necessary to comply with GDPR.
It decreases the user experience and increases the chance of Spam.
Cookie Compliance Software: Build or Buy?
Building the Cookie Banner:
If you have a big organization with a programmer and a lawyer, and you're willing to prioritize a set of teams too, monitor, and keep up with every update with the changing laws, without making an error on any compliance process: Then Surely you can build your own.
Buying a Cookie Banner:
Apart from the price, there's no real disadvantage to buying a cookie banner or cookie consent management like Adzapiers' Cookie Consent Solution.
Building a free banner might look lucrative, but it comes with costs: your time, programmer, and lawyers' fees.
We know you're smart enough to understand that paying a nominal price for compliance is always better than building a banner by wasting more time and money. So let me once again show you what you'll get with Adzapier's CMP.
All global data privacy and other legal requirements are in one place.
Incorporates your business with updated compliance laws at all times, saving your precious dollars on lawyers.
Adzapier is an IAB consent management platform.
We design cookie consent banner that fits your brand story.
Help you with insights to increase consent opt-ins. More opt-ins mean more customers.
We track all the consent for the rainy day of surprise DSAR audits.
Auto blocks nonessential cookies for GDPR compliance
Implied vs. Explicit cookie consent
There are two different approaches, as per Data privacy laws, two collect the user's consent for the usage of cookies:
Implicit consent and explicit consent
Implied consent, also known as opt-out, can be defined as consent that is not actively asked for, and the user passively accepts the usage of these cookies.
A user is presented with a pop-up called a cookie consent banner, which informs the user precisely, and the purpose of the cookies on their website.
This type of consent also allows the user to change the previous preferences they had consented to or opt out of the data processing altogether.
There are different requirements concerning different applicable privacy laws. Some laws require businesses to obtain separate consent for specific purposes of the cookie. Some laws require businesses to use single consent, while others want you to notify the user about cookie usage.
But an important note: You must block cookies on your website until and unless the user's consent. Otherwise, it is considered invalid and illegal, resulting in unnecessary fines. The EU's GDPR is known for requiring explicit consent from the user.
Cookie Banners and Global data privacy laws
Comply with the Global Cooke Laws: What if you don’t?
So, what happens when you don't follow the cookie law and fail to provide cookies notice or obtain users' data without their consent? Many small and medium-sized businesses still feel no need to comply with the cookie law or any other data privacy regulation. They think only big business needs to be wary of compliance. Well, you couldn't be more wrong!
For instance, the new Californian amendment, CPRA, will heavily crack down on more small and medium size businesses. The simple reason is that large corporations have too much power and an army of advocates that will put the cases in the decade-old backlogs.
They have the time and resources that you need. So, think again. Complying with a cookie or any data privacy law is your only way out.
Non-compliance in the age of data privacy world means only one thing: Your downfall
You must understand the actual implications non-compliance will have on your business. The first thing is the monetary fine, but if you look at it from a different perspective, this cost is still bearable.
The other things business owners often need to pay attention to are reputational and brand damage. This cost is genuinely unbearable. And once it is gone, it is tough to regain.
People don't like to be treated as mere products. And it is the businesses' responsibility to change this perception. But before that, let's see what data privacy laws say about non-compliance.
Fines in Millions!
Different laws and different provisions for penalties, but they together have a clear message for businesses. They prevent companies from taking undue advantage of the user's data.
Privacy laws like GDPR, for example, are famous for slapping hefty fines, primarily on tech behemoths, because they have large-scale operations which can affect the personnel of at least millions of people if personal data is used inappropriately and illegally.
GDPR: up to 20 million EUR or up to 4% of the annual turnover, whichever is greater
CCPA: up to $2,500 per violation and $7,500 per violation that is intentional or involves children (as per CPRA).
VCDPA: Fines for non-compliance with Virginia's VCDPA can go up to $7,500 per violation.
LGPD: Up to 50 million Real or 4% of the annual turnover, whichever is higher.
PIPEDA: up to CAD 100,000 per infringement.
GDPR and Cookie Banner
The General Data Protection Regulation is the world's first and strictest data privacy law, which the European Union formulated. This regulation came into effect on 25th May 2018, and many businesses are already aware of the cookie consent banner requirements under GDPR.
GDPR Cookie Consent Banner
One of the central tenets of GPDR is its promise of protecting EU citizens by giving them the Right to information about how businesses collect and process their data.
It makes it mandatory for companies to tell the user why data is collected and how long it will be stored.
Apart from that, under GDPR, individuals also have the Right to object if they don't want their data to be collected and processed by businesses.
GDPR Cookie Banner Requirements
To comply with GDPR, websites with visitors from the EU must use a consent banner that provides EU citizens with these rights. Here is a look at what makes up a GDPR-compliant cookie banner:
GDPR requires businesses to provide visitors from the EU with a cookie consent banner that must meet certain conditions:
1. Include an accept and reject button
To comply with GDPR, you must provide the user with opt-in consent.
This means a user must be provided with a cookie consent banner with a clear Accept and Reject button. With this approach, apart from the essential cookie, no other type can be loaded onto the user's device. Apart from that, the button shall be clear to the user if they agree with the deployment of cookies as soon as they hit Accept button.
2. Detailed information regarding the purpose of cookies
As per GDPR, businesses are responsible for the processing of personal data and need to give users detailed information about the type of cookie, their purpose for using such cookies, and how long they will be storing personal data.
GDPR thinks this will benefit the user to make an informed choice before accepting cookies.
For example, websites use different kinds of cookies for various purposes like analytical, advertisements, social media, performance, and much more.
So, the user must be informed by businesses about how their data is used for these various purposes.
3. Breach Notification with third parties
Another vital functionality of GDPR is that a business must be transparent about how you handle the user's data. If you make your business revenue, or even a proportion of it, by selling or sharing the personal data of EU citizens with third-party vendors, then you must tell this to the user upfront.
Before they accept the usage of cookies on their website, a business must include this in their analytical and advertising section of the banner. Also, many enterprises link their vendor's websites with whom they share the data.
5. Include a link to the cookie settings
GDPR doesn't require your business to link to the cookie settings page unless you provide a reject option in your cookie consent banner. However, it does have a strategic advantage, as users can allow some cookies rather than none.
By linking to your cookie preference setting, you give options to your consumer to accept at least some kind of cookie that might help you to collect specific relevant personal data.
GDPR Cookie Consent with Automated Cookie Blocking
Automated cookie blocker has become a prime requirement in GDPR. And that's why Adzapier's Cookie consent management provides an automatic cookie blocker that quickly complies with the GDPR requirements and builds trust with your consumers.
CCPA: California Cookie Law
The California Consumer Privacy Act (CCPA) is the United States' first data privacy regulation enacted on 1st January 2020. It affects businesses that collect personal data concerning the citizens of California that meet one of the following three conditions.
The business earns more than $25 million in revenue.
The business collects and processes data of at least 100,000 consumers, households, or devices (updated CPRA)
The business derives at least 50 percent of its annual revenue from selling the personal information of California residents.
Under CCPA and amended CPRA, the business must convey to the user about the data collection and data processing of personal data, and with whom your business share/sell this data.
Also, CPRA doesn't require you to provide opt-in consent through a cookie banner unless you load any nonessential cookies on the users' devices.
For example, the website can deploy cookies when the user visits the website as long as it informs the user about the purpose of the cookie and the categories of cookies used to collect personal data.
However, if you are dealing with the sale/sharing of personal data of visitors aged between 13 to 16 or categorized as minors, you must provide explicit consent. It may be better to use an opt-in consent model unless you are sure the average age of the visitor will be at least 16.
CCPA Cookie Consent Banner
Here is what a CCPA-compliant Cookie Banner should include:
Information about cookie use CCPA and CPRA require businesses to provide the user with clear and specific uses of cookies, their categories, and their purposes. Additionally, they must also inform about sharing or selling personal data to third parties.
A button to accept cookies While CCPA and CPRA do not require opt-in consent from the business, it is recommended that you include a link or a button that allows people to accept cookies. Unlike GDPR, websites can deploy cookies before the user gives consent as it provides information about the data it collects at the point of collection under CCPA and CPRA. Also, include a link to the cookie preference settings that can help the user to know what cookies are used, and they can consent to at least one or two cookies.
VCDPA Cookie Consent Banner
Virginia's Consumer data privacy act, or VCDPA, is the 2nd US data privacy law after California's CCPA. It has been effective since 1st January 2023. The Virginia Consumer Data Protection Act (VCDPA) gives the citizens of Virginia the consumer right to opt out of collecting, processing, and selling personal data by businesses. It also requires you to obtain the user's consent before collecting and processing sensitive personal data.
This is similar to the EU's General Data Protection Regulation (GDPR), which has been in effect since 2018. Like the EU's GDPR, VCDPA prohibits cookie consent banners or cookie banners from having pre-ticked boxes. They want you to clarify that the end user consent must be "freely given, specific, informed, and unambiguous."
From 1st January 2023, websites, companies, and organizations that conduct business in Virginia or produce products or services targeted to Virginia residents must comply with the VCDPA's requirements.
LGPD Cookie Consent banner
The Lei Geral de Protecao de Dados, or Brazilian data protection law (LGPD), is Brazil's first national data privacy regulation enacted since August 2020. It has starching similarities with GDPR – the cookie banner you use to comply with GDPR is the one you'll need to comply with LGPD as well.
Based on the regulation's rights for data subjects, those who want to be LGPD compliant will have to create a cookie banner that includes the following:
A statement that explains to the visitor that the website processes their data.
Information about how and why the website processes data.
Information about which parties (if any) the website shares data with.
A statement telling the user that they can deny the consent of data collection and a button that allows them to do so.
PIPEDA and cookie banner
Your PIPEDA-compliant cookie banner should ensure the following:
You obtain explicit consent unless the user would reasonably expect the processing
You inform the user of your processing purposes and categories of data processed at the time of collection
Quick case studies of cookie noncompliance:
Severe penalties and massive fines have been imposed, especially by the EU's data protection authorities, for obtaining illegal consent through a non-compliant cookie consent banner.
Nobody can escape from the data privacy regulation. Data privacy laws have fined big-tech, small and medium businesses, micro-businesses, and private individuals, non-compliant cookie banners.
Here are some examples to put things into perspective:
Brand Reputational damage
This is the worst nightmare and the gravest damage a business could ever have. Over the years, due to the increase in technology, people have become more aware of how companies, in the garb of personalization and enhanced user experience, lure users into accepting cookie consent or do not even ask for it.
But this is a self-sabotaging act. Not only do companies lose money from fines, but they also lose the respect and trust of the very people they want to serve. It is because of the people that businesses thrive.
If you can't guarantee the user with personal data you took without their consent, how can they continue doing business with you in the future?
You get the idea. People dislike businesses that do not respect their privacy.
NOYB: They are Watching
If you think you can get away with a non-compliant cookie banner and no one cares, think again. A staunch data privacy advocate, NOYB (none of your business) is an Austrian NGO at the forefront of high-profile international cases like Meta. Apart from that, NOYB helps small to medium size companies comply with GDPR, which is also one of their biggest struggles.
Often, these small companies argue that they have assumed that data privacy laws such as the EU's GDPR or California's CPRA target only big corporations, and they have the responsibility to comply. Due to the media's attention to world-renowned companies being heavily fined, small and med size firms have a preconceived notion that compliance is for large businesses rather than for them.
As per the report by NOYB, more than 50% of websites and businesses still need to comply with the EU's GDPR. They have been working day and night to file hundreds of cases against non-compliant companies, forcing them to comply or face hefty fines.
Be aware that even one dissatisfied consumer is enough to alert the relevant data protection agency about your non-compliance, subjecting your business to an investigation and a possible penalty.
Cookie banner: Best Examples and Best Practices
Just because you must comply with data privacy laws' requirements for cookie banners doesn't mean it has to be unappealing and dull. Feel free to play around and mix your brand's value with your cookie banner's style and design while complying with the cookie laws.
Styles of cookies banners
Best practices of UX/UI and genuine legal requirements will make an excellent cookie banner style. You need to be mindful of particular when designing one:
Design the Fits Your Brand
This is all about who you are as a brand. It's better to show than tell perfectly fits here. Use a style that pops out your brand story and helps people to get comfortable with it. With Adzapiers' CMP, you can play around and create a creature that will hold your customers' attention.
Digital psychology plays a key role here. You must understand how your customer scans the given page. Most cultures read or analyze things from left to Right, except middle eastern culture, which reads or analyzes from Right to left. So, it's crucial to position the banner which creates maximum impact without being too overwhelming.
California's’ CCPA Wokflow
Workflow is a systematic process flow that is performed by the approver while processing a DSAR request. The request senders can track their request and find what stage of the workflow the request stands at.
In the Adzapier Portal, four predefined workflows are available namely Access Workflow, CCPA Workflow, Default Workflow, and Delete Workflow. Moreover, you can create your customized workflow. While creating the DSAR web form for your organization, you should choose any one of the workflows from the list.
Cookie Consent Management: Your privacy compliance partner
Is there any better way to collect consent through a personalized cookie banner that tells your brand's story? A banner that complies with significant data privacy laws worldwide with no extra resources?
A platform that will record all the consent so that your reputation is intact when terrifying data regulators arrive at your door for audits?
Adzapiers’ Consent Management Platform will do it all.
It seamlessly integrates your website without hampering its performance. With minimal configuration, Adzapiers' CMP has a plethora of pre-built cookie banners that can be personalized per your brand's need.
Apart from that, we provide you with strategic insights that will help you to get more consent opt-ins, increasing your customer database. We also record consents and sessions, so your business remains trustworthy for DSARs and cyber-security audits.
We have features like Geo-tagging that analyzes the visitors' location and modifies the cookie banner per the locations' active data privacy law. For example, if an EU user visits the website, they will be shown a GDPR-compliant cookie banner. And if the visitor is from California, they'll be offered a CPRA respectful cookie banner.
Try Adzapier's CMP and get 14 days of stress-free compliance from us. Schedule a demo with one of our privacy experts, and they'll get you up and running within 30 minutes.
Will a cookie banner affect my website SEO?
No. If you have integrated or set the cookie consent banner correctly, then these pop-ups will not hamper your website's SEO, and the information on your website will still be detectable to Googlebot. Don't fall for common preconceived notions.
Do I need a cookie banner?
Do I need a cookie banner if I use Google Analytics?
Yes, for Google Analytics to function, you need to have a cookie consent banner on your website to collect user consent. You are required to collect users' consent before deploying cookies on their websites.
What is the purpose of a cookie banner?
A cookie consent banner is a cookie notification that collects users' consent to use a cookie to collect their personal data. A cookie consent banner is usually a form of a banner or pop-up that is integrated into a website or a mobile app, collecting explicit consent first before deploying cookies.
Do all websites need a cookie banner?
Do you need a cookie banner on an app?
What is a GDPR cookie banner?
A GDPR-compliant cookie consent banner must inform the user about the website or mobile apps cookies and trackers, the purpose of data collection, and the duration of data to be stored and request for user's explicit consent to use these cookies and trackers by pressing either accept or reject button.
Does CCPA require a cookie consent banner?
CCPA is based on an opt-out consent model, which means it doesn't require users' explicit consent unless the personal data belongs to minors (children 13-16). Your website must not load nonessential cookies unless the user gives consent through a cookie banner