How Companies Use Cookies and What the Law Requires

Cookie consent banners have become ubiquitous online, but the legal requirements behind them vary significantly depending on where your users are located and what type of tracking is involved.

What Cookies Actually Do

Cookies are small files stored on a user's device that allow websites to remember information across visits — some are essential for basic site functionality, while others track behavior for analytics, advertising, or personalization purposes.

The legal obligations generally scale with the purpose: strictly necessary cookies typically require less disclosure than tracking or advertising cookies, which raise more significant privacy concerns.

Consent Requirements Vary by Jurisdiction

The EU's ePrivacy rules generally require affirmative opt-in consent before setting non-essential cookies, which is why EU-facing websites typically show a consent banner requiring an active choice rather than just a notice.

Most U.S. state privacy laws take an opt-out approach instead, requiring businesses to honor a user's choice to opt out of tracking or the sale of data derived from cookies, rather than requiring opt-in consent upfront.

Building a Compliant Cookie Practice

A cookie banner that accurately reflects the actual choices available, a cookie policy explaining what's collected and why, and technical mechanisms that actually honor a user's stated preferences are all necessary for genuine compliance — not just for having a banner that looks compliant.

Businesses using tools like the Global Privacy Control signal should make sure their systems actually recognize and respond to that signal where required by applicable state law.

Frequently Asked Questions

Do I need a cookie consent banner if my business only serves U.S. customers?

Increasingly yes, since several U.S. states now have requirements around honoring opt-out preferences related to tracking technologies, even without the EU's opt-in requirement.

Is it enough to just have a cookie banner without changing my actual tracking practices?

No — regulators have taken action against companies whose actual data practices didn't match what their cookie banners represented.

Cookie compliance requirements differ meaningfully depending on your audience's location. A data privacy attorney can help you build a cookie practice that matches both your actual technical setup and the applicable legal requirements.