Have you visited a website recently and encountered a pop-up banner asking if you accept or deny cookies? With the concern of data privacy continuing to grow for internet users, more often than not, you will experience these consent banners on most sites you are visiting.

If you’re associated with a business that operates online, you might be wondering what this cookie banner actually is and if you need to implement it on your website. The short answer is, yes, you definitely should.

If consent mode and Canadian data privacy laws are an intimidating concept for you, we’re here to help. In this article, we will be breaking down what cookies are, why cookie consent is so important, and how to implement it effectively on your own website.

What Are Cookies?

Cookies are text files made up of data. This data is collected and stored on your browser and is used to identify your computer when you log in to a certain network or website.

As you browse a website, cookies track your online behaviour and information. This data is then used to customize information and enhance the user experience.

A common example of cookies in action are login details, like a username and password. When you revisit a page that requires a login and it automatically inputs your login credentials, you have cookies to thank you. 

One of the benefits of cookies is that they simplify the user experience of a website by personalizing what you see. Without them, navigating a website would be a lot less interactive and convenient. Plus, you’d have a lot more password resets because, let’s face it, who can remember all their different password combinations these days?

Cookies for Marketing Purposes

Understanding a user’s behaviour on a website provides invaluable information for businesses and their marketing strategies. Cookies can help business owners measure how visitors navigate the site, how long they stay on certain web pages, where they exit, and when they come back. This can help digital marketers create and tailor campaigns to these specific user segments.

In digital marketing, advertising is often a prominent piece of the marketing strategy. When someone clicks on an ad that interests them, cookies help track this behaviour and then deliver more ads that are relevant based on the user’s preferences.

Ever found yourself wondering if Google has been secretly listening in on your thoughts and conversations? You look at one pair of shoes online, and suddenly everywhere you turn, you see ads enticing you to grab a pair. That would be cookies at work! Ad retargeting is a common tactic used by companies to show similar ads to people who have expressed interest in a product. Without cookies, websites wouldn’t have the data needed to track those user preferences.

Dangers of Cookies

As useful as cookies can be as a website visitor and as a business owner, there are risks that shouldn’t be ignored. Up until recently, websites have been using cookies to store personal information and the behaviour patterns of users without their explicit consent.  

As people become more aware of their data privacy, this has been raising some concerns. While most websites aren’t using this information maliciously, it is important to be aware of the ways your personal information could be compromised. 

  • Websites can mishandle user information, sharing what was collected from their cookies with third-party applications.
  • Cookie hijacking: any information inputted on an insecure website or wi-fi connection could be captured and used to impersonate you or lock you out of your account. 
  • Malware can be disguised as cookies to access and steal your information.

Do I Need Cookie Consent on My Website?

As data privacy laws continue to develop, your business needs to remain compliant. When it comes to utilizing user information from cookies, it’s very important that you are up-to-date with data privacy laws in Canada. This not only protects your customers and web users, but also your business. Here are a few privacy legislations to be aware of!

PIPEDA

The Personal Information Protection and Electronic Documents Act (PIPEDA) is the primary federal law governing data privacy in Canada. To protect Canadian residents, PIPEDA’s goal is to ensure their information remains secure and private. From identifying information like your name and birthday to cookies and IP addresses, PIPEDA requires businesses to obtain consent when gathering or using any type of information.

In terms of cookie consent, PIPEDA doesn’t explicitly state that websites must have a banner or pop-up that gives users the option to “accept” or “deny” cookies. However, because organizations are required to obtain meaningful consent before collecting personal information, this legislation does in turn apply to cookies.

General Data Protection Regulation (GDPR)

Originating in 2018, GDPR was the first law of its kind, created to set strict guidelines for how businesses in the European Union handle people’s personal data. How is this relevant to businesses in Canada? It’s expected that similar privacy laws will eventually come into effect in Canada as well, so gaining a better understanding now will help Canadian businesses prepare for future privacy regulations.

Quebec’s Law 25 or the Privacy Legislation Modernization Act

While your business may not be located in Quebec, this legislation is important because it can still pertain to any Canadian brand that has clients in Quebec or is actively targeting Quebec Residents (say if you have a French-language version of your website). With similar data privacy regulations to the EU’s GDPR, this act applies to any business collecting data from a Quebec resident.

Again, as we anticipate stricter data protection laws nationwide, understanding Law 25 can help Canadian businesses prepare, regardless of their location. Some notable elements of Law 25 include:

  • Phased compliance mandates
    • Appointing a privacy officer
    • Implementing privacy policies
    • Ensuring data portability
  • Explicit consent requirements for data tracking
  • Private right of action for individuals

Google’s Plans for Third-Party Cookies

Initially, Google planned to phase out third-party cookies entirely by 2024 to enhance user privacy. Third-party cookies are used to track users across different websites, allowing advertisers to create detailed profiles for targeted advertising. This move was seen as a significant step towards greater data privacy, reducing the ability of companies to track users without their explicit consent.
However, in a surprising turn of events, Google announced on July 22, 2024, that it would retain third-party cookies. Instead of eliminating them, Google will allow users to manage their cookie preferences directly through their browser settings. This decision underscores the importance of robust consent management systems to balance personalized advertising with user privacy and compliance with evolving regulations.

Types of Consent

In the context of digital privacy, there are two main types of consent: express and implied.

Express Consent is when a user explicitly gives permission for a website to collect their personal information. A cookie consent banner would be an example of expressed consent. 

On the other hand, Implied Consent is when a user’s consent is not directly stated but is indicated by an affirmative action they take. This method of consent is based on the presumption that the customer has given their permission based on actions like making a purchase or submitting a request. 

To put it simply, organizations have to obtain clear consent before they begin tracking any data. Relying on implied consent has many risks, including a negative user experience, a lack of trust with your users, and arguably the most serious, a violation of privacy regulations.

Implementing Cookie Consent

If you take one thing away from this article, it’s that you must stay informed of the latest developments to maintain compliance. Privacy laws continuously evolve, and it’s your responsibility to adapt and implement these changes. 

If you’re not feeling confident in your ability to stay on top of this as a business owner, consider working with a cookie consent management platform. These organizations can help you ensure your website complies with data privacy requirements and will help you stay on top of new developments.

There are many layers to data privacy, and compliance requirements can vary depending on your business and the personal information that is collected. However, there are some elements that should always be included in a successful cookie consent banner:

  • As a business, you have the responsibility to give users the opportunity to respond “yes” or “no” to cookies.
  • This choice should be provided before they begin to engage with your site, which is why a banner or pop-up is recommended.
  • The terms should be straightforward and easy to understand. You must indicate the purpose for collecting the information and how it will be used.
  • It should be just as easy to opt out of cookie consent as it is to accept it. It goes without saying that users should always have the opportunity to revoke consent and have all of their stored data removed at any point. 
  • Website owners must be able to prove the user’s consent, so this information must be properly recorded and stored.

So You’ve Implemented Cookie Consent…Now What?

While this may seem obvious to some, we have to say it: implementing a Cookie Consent banner will affect your Analytics Data. 

This is especially true if your banner relies on Express Consent, ie if a user needs to expressly permit your website to track them. 

Once you have implemented a Cookie Consent Banner, businesses and website owners should expect to see a natural drop in reported website traffic. Note: this is not a drop in actual website traffic. Instead, it is a drop in traffic and sessions that your analytics can report on due to users electing not to permit you to track their activities

However, there is hope. Many users have continued to allow websites to track them for analytics and marketing purposes and, if you have a proper events setup, you will still be able to gather helpful insights even with a smaller pool of data.

Final Thoughts

For businesses operating online in Canada, understanding and complying with cookie consent requirements is crucial. You must be familiar with relevant privacy laws and achieve compliance by implementing tools to gain consent, like a cookie banner or pop-up. As experts in digital marketing, the privacy of online users is so important to us here at Bluetrain. If you’re looking for someone to work with you to ensure you are maintaining a compliant online presence, we can help. We’ll take a look at the unique needs of your business and guide you toward developing a solution to ensure you’re respecting users’ privacy rights while meeting legal requirements.