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Cookie Policy Requirements and Best Practices for Websites

Learn what your cookie policy must include, how to implement cookie consent banners, and stay compliant with GDPR and ePrivacy requirements.

June 14, 20257 min readPactDraft Team

Cookie Policy Requirements: What Your Website Needs

Cookies are small text files stored on a visitor's device that track behavior, remember preferences, and enable advertising. Nearly every website uses cookies, and multiple privacy laws regulate how they must be disclosed and consented to. A clear cookie policy — paired with a proper consent mechanism — is essential for legal compliance.

What Are Cookies and Why Do They Matter?

Cookies serve several purposes on modern websites:

  • Essential cookies — Enable core functionality like login sessions, shopping carts, and security features
  • Performance cookies — Collect data about how visitors use the site (page views, load times, errors)
  • Functionality cookies — Remember user preferences like language, region, and display settings
  • Targeting/advertising cookies — Track browsing behavior to deliver personalized ads across websites

The legal issue is not cookies themselves but the data they collect and how that data is used. Tracking cookies that follow users across websites raise significant privacy concerns that multiple regulations now address.

Legal Requirements for Cookie Policies

EU ePrivacy Directive (Cookie Law)

The ePrivacy Directive requires websites to:

  • Inform users about the cookies being used
  • Explain the purpose of each cookie
  • Obtain user consent before placing non-essential cookies
  • Allow users to refuse cookies and still access the site

Only strictly necessary cookies (those required for the site to function) are exempt from the consent requirement.

GDPR

The GDPR reinforces cookie consent requirements by:

  • Requiring that consent be freely given, specific, informed, and unambiguous
  • Prohibiting pre-ticked consent boxes
  • Requiring an affirmative action to indicate consent (clicking "Accept" qualifies, but continued browsing does not)
  • Giving users the right to withdraw consent at any time

CCPA/CPRA

The CCPA does not require cookie consent banners in the same way the GDPR does, but it does require:

  • Disclosure of data collection through cookies in your privacy policy
  • A "Do Not Sell or Share My Personal Information" link if cookies are used for cross-context behavioral advertising
  • Honoring Global Privacy Control (GPC) signals as opt-out requests

The consent standards differ between GDPR and CCPA. GDPR requires opt-in consent before non-essential cookies are placed. CCPA generally follows an opt-out model where cookies can be placed but users must be able to opt out. If you have users in both regions, implementing opt-in consent for all users is the safest approach.

What Your Cookie Policy Must Include

1. What Cookies You Use

List all cookies your website places, organized by category:

  • Cookie name — The technical identifier
  • Provider — Who sets the cookie (your domain or a third party)
  • Purpose — What the cookie does
  • Type — Session (deleted when browser closes) or persistent (remains for a set period)
  • Duration — How long the cookie persists
  • Category — Essential, performance, functionality, or targeting

2. Why You Use Cookies

Explain the purposes for each category of cookies in plain language. Users should understand what each type of cookie does and why it benefits them or your business.

3. Third-Party Cookies

Identify cookies set by third parties on your website. Common sources include:

  • Google Analytics
  • Facebook Pixel
  • Google Ads
  • YouTube embeds
  • Social media sharing buttons
  • Live chat widgets
  • Embedded maps

For each third-party cookie, identify the provider and link to their privacy policy.

4. How to Manage Cookies

Provide instructions for controlling cookies:

  • How to use your cookie consent banner to accept or reject categories
  • How to change cookie preferences after the initial choice
  • Browser-specific instructions for blocking or deleting cookies
  • Note that blocking certain cookies may affect site functionality

5. How to Withdraw Consent

Explain how users can withdraw their cookie consent. This typically involves:

  • A link or button to reopen the cookie consent preferences
  • Browser settings to delete existing cookies
  • Instructions for clearing specific cookies

Cookie Consent Banner Best Practices

Obtain Consent Before Placing Cookies

Under GDPR, non-essential cookies must not be placed until the user has given consent. This means your cookie consent mechanism must:

  • Block non-essential cookies by default
  • Load non-essential cookies only after affirmative consent
  • Allow granular control over cookie categories

Provide Genuine Choice

Your consent banner must offer meaningful options:

  • "Accept all" and "Reject all" should be equally prominent (not hiding the reject option behind multiple clicks)
  • Users should be able to select which categories they consent to
  • The interface should not use dark patterns to manipulate choices

Do Not Use Cookie Walls

A cookie wall blocks access to the site unless the user accepts all cookies. This approach is generally considered non-compliant with the GDPR because it makes consent a condition of access, which means it is not "freely given."

Make It Easy to Change Preferences

Provide a persistent way for users to update their cookie preferences. Common approaches include:

  • A "Cookie Settings" link in the website footer
  • A floating icon or widget
  • A link in the cookie policy itself

Audit your website's cookies regularly. Third-party scripts, plugins, and embedded content can introduce new cookies without your knowledge. Use browser developer tools or a cookie scanning service to identify all cookies placed by your site.

Cookie Policy vs. Privacy Policy

Your cookie policy can exist as a standalone document or as a section within your broader privacy policy. Each approach has advantages:

Standalone Cookie Policy

  • Easier for users to find cookie-specific information
  • Can be linked directly from the cookie consent banner
  • Simpler to update when cookie practices change

Section Within Privacy Policy

  • Avoids creating too many separate legal documents
  • Keeps all data collection disclosures in one place
  • May be simpler for smaller websites

Many businesses use a hybrid approach: a brief cookie notice accessible from the consent banner with a link to the full cookie details in the privacy policy.

Common Cookie Compliance Mistakes

Not Actually Blocking Cookies

Many websites display a consent banner but load all cookies regardless of the user's choice. This defeats the purpose and violates GDPR requirements. Verify that your consent mechanism actually controls cookie loading.

Ignoring Third-Party Cookies

Every third-party script you add to your site may introduce cookies. Failing to audit and disclose these cookies is a common compliance gap.

Treating "Continue Browsing" as Consent

Under the GDPR, implied consent through continued browsing is not valid. Users must take an affirmative action like clicking an "Accept" button.

Failing to Honor GPC Signals

Under CCPA, websites must treat Global Privacy Control browser signals as valid opt-out requests. Ignoring GPC signals can result in enforcement action by the California Attorney General.

Technical Implementation

Implementing compliant cookie consent typically involves:

  1. Cookie scanning — Audit all cookies on your site
  2. Consent management platform — Use a tool that blocks non-essential cookies until consent is given
  3. Category-based consent — Allow users to consent to individual cookie categories
  4. Consent logging — Record when and how consent was given for compliance documentation
  5. Regular audits — Rescan for new cookies after site updates

A comprehensive cookie policy paired with a properly implemented consent mechanism demonstrates your commitment to user privacy and keeps your business on the right side of evolving privacy regulations.

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