You've launched your eCommerce store, installed Google Analytics, and added Facebook Pixel for retargeting. But there's a problem: you might be collecting customer data illegally.
Cookie consent laws now affect nearly every online business. Get it wrong, and you could face fines reaching €20 million under GDPR or $7,500 per violation under California law. Get it right, and you'll build customer trust while keeping your marketing tools running.
This guide covers what eCommerce businesses need to know about cookie consent, how US and EU requirements differ, and how to stay compliant without crippling your analytics.
Cookie consent is the permission you get from website visitors before collecting their personal data through cookies. When someone lands on your site, they decide whether to allow tracking technologies that monitor their behavior.
A cookie consent banner appears when users first visit your site. It explains what cookies you use and gives them control over which ones to accept. Under most privacy laws, you can't drop marketing or analytics cookies onto someone's browser until they explicitly agree.
Three types of consent exist:
Cookie consent differs from a cookie policy. The consent mechanism is the banner or popup where users make their choice. The policy is the document explaining what each cookie does and who accesses the data.
The rules governing cookie consent depend on where your customers live, not where your business operates. An Arizona-based retailer selling to French customers must comply with EU law for those transactions.
EU cookie consent follows two regulations: the ePrivacy Directive (the "Cookie Law") and GDPR. These regulations state that companies must get consent before loading any non-essential cookies. This means analytics tools like Google Analytics, marketing pixels, and personalization engines can't run until users accept their presence. User consent must be freely given, specific, informed, and unambiguous. Company banners must offer separate options for different cookie categories so users can choose marketing, analytics, and functional cookies individually. Pre-checked boxes don't count as valid consent, and the "Accept" and "Reject" buttons must have equal prominence so companies can't make the reject option smaller, harder to find, or require extra clicks.
EU laws also state that companies must document who consented, when they consented, and what information they saw at the time. Because of this law, most businesses renew consent every 12 months.
For eCommerce sites following GDPR regulations it means Google Analytics stays dark until users opt in, Facebook Pixel can't fire, and account-based product recommendation engines must wait for permission before promoting cross-sells.
The US takes a different approach. Federal law doesn't require cookie consent, but several states have passed their own regulations. California's laws set the standard most businesses follow. The California Consumer Privacy Act (CCPA) and its successor, the California Privacy Rights Act (CPRA), use an opt-out model meaning sites can load cookies and collect data without prior consent, in most cases. Two do exceptions exist: sensitive personal information and data from minors under 16 require opt-in consent before collection.
Every California-facing business must provide a "Do Not Sell or Share My Personal Information" link that lets users opt out of having their data sold or shared with third parties. The exact wording matters because variations aren't compliant. Virginia, Colorado, Connecticut, and Utah have similar laws with their own nuances, and other states are considering legislation.
For eCommerce sites in the US, you can run analytics and marketing tools from the start, but you must give users a clear way to opt out.
Which rules apply to your business? Look at your customer base. Selling to EU customers means GDPR compliance, regardless of your business location and many eCommerce sites implement both standards to cover all visitors.
Industry data shows that roughly 50% of site visitors reject Cookie tracking. This means that depending on your cookie compliance, your site and analytics may see significant drops and gaps in data gathering.
First Party Cookies are set by the domain the user navigated to. This means if you visit www.storeA.com, you are more likely expecting and understanding for Store A to track some of your engagement.
Third-Party Cookies is when Store A allows another engine, like Google, to also have access into your engagement.
While first-party cookies are viewed as more expected and proportionate, Third-party tracking is seen as surveillance, as users never intentionally agreed to engage with the third-party.
The majority of analytics are considered third-party data. While most analytics engines use first-party cookies (data is collected off an eCommerce site, for example), because the data ultimately flows to a third-party company like Google or Meta, the data is categorized as third-party. Third-Party tracking has undergone iterations of stricter regulations and is seeing a rise of legal limitations.
While beneficial for consumers, the legal limitations third-party tracking is undergoing is having dramatic effects on the data and user information sites are able to track. These limitations include buyer behavior, traffic acquisition, and user demographics. Without the knowledge of this data, companies are having a harder time understanding how to effectively sell to their customer base.
One way to gather data is server-side tracking. While Server-side tracking still collects user analytics, it is collected and stored on a company’s own browser. That data is then stored, in a controlled and filtered way to the third-party like Google and Meta. Google or Meta still receive the data, but they are aggregating far less personal information and likely cannot tag it to a specific person, thus making the data collection less like surveillance.
However, if a user opts-out of tracking and rejects all non-essential cookies that choice does apply to server-side tracking and data may not be gathered from that user.
Google Consent Mode v2 takes a different angle: when users reject cookies, it estimates conversions and behavior through modeled data instead of individual tracking. You're working with approximations, instead of actual tracking, but you maintain some visibility into campaign performance.
Getting compliant doesn't mean abandoning your marketing stack. It means implementing the right tools and processes.
Audit Your Current Cookies - Start by scanning your website with free tools from Cookiebot or Osano to identify every cookie on your domain. Categorize each as necessary (shopping carts, secure checkout, session management), functional (language settings, preferences), analytics (traffic tracking), or marketing (retargeting, ad personalization).
Choose a Consent Management Platform - A Consent Management Platform (CMP) handles the technical work of blocking cookies until users consent. Look for automatic cookie blocking, geolocation detection, integration with your e-commerce platform, consent logging, Google Consent Mode v2 support, and multiple language options. Cookiebot works across platforms with comprehensive features, OneTrust serves enterprise businesses, and Osano targets mid-market companies. Free options like Cookie Consent by TermsFeed provide basic functionality without advanced features.
Update Your Privacy Policy - Your privacy policy must explain cookie usage in detail. List each cookie category, what data it collects, retention periods, and who can access it. Include instructions for withdrawing consent and keep the language clear. Update the policy whenever you add or remove tracking tools.
Configure Your Tracking Tools – The first piece of advice would be to use updated and current tracking tools. GA4 is much more compliant by design that Universal Analytics is, so if you’re running an older version of Google Analytics be sure to migrate to GA4.
Within tracking tools, be sure to configure privacy settings correctly. If you’re in the USA, be alert of state limitations, California in particular has strict tracking laws. As a general rule across America, sites must allow for opt-outs, but users do not need to opt-in. Allowing for an opt-out instead of opt-in policy allows for data to be tracked, while leaving the power in the user’s hands to deny. Ensure that “sharing” tools like Google Signals, are turned off, but that Modelled Conversions is on.
Monitor and Maintain - Track consent rates in your CMP dashboard and compare them against industry benchmarks to gauge performance. Run quarterly cookie audits since new tools add cookies without warning. Keep your implementation current as regulations evolve.
eCommerce companies lean heavily on cookies to track user traffic and customer behavior. On retail stores specifically, cookies are used to track “key events” such as items added to cart, abandoned carts, user sessions and completed buyers’ journey, product recommendations, personalized content blocks, dynamic pricing, and limitations on promo codes.
Cookies are also used to help target Pay-per-click Ads like Google Ads and Meta Ads to appropriate audiences based on past purchasing behavior, browsing history, and demographics.
While cookies aren’t required to complete an eCommerce transaction, they play a crucial role in enhancing traffic quality, supporting user acquisition, and ultimately driving higher revenue for online retailers.
Briteskies, an Adobe Commerce Solutions Partner with 15+ years of experience, offers comprehensive eCommerce services. We specialize in Adobe Commerce (Magento) implementations, integrations, and customizations for B2B and B2C businesses. Our expertise extends to digital marketing strategies, SEO optimization, analytics, and technical audits, helping businesses streamline operations, enhance their online presence, and drive revenue growth through tailored eCommerce solutions.
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