Do E-Commerce Websites Require a Cookie Policy?

Cookies are small text files that a website puts on a user’s computer or mobile device when they visit. They allow websites to store user information about their visit.

E-commerce sites use cookies to differentiate customers, track preferences and settings, and provide tailored ads based on interests inferred from previous visits. The data they gather is often considered confidential and sensitive information.

In May 2018, the General Data Protection Regulation (GDPR) became effective, mandating all European businesses to safeguard consumers’ personal data, including the use of cookies. State or federal governments may punish or sue you otherwise.

For more info about this, take a look at our guide to GDPR-compliant cookie consent.

What is Included in a Cookie Policy?

A cookie policy is required by law if your e-commerce store collects personal information. GDPR compliance means you need to provide your store with the following:

• • A clear, easy-to-find e-commerce privacy policy that outlines how your website gathers, uses, and distributes information. This applies to cookies and other data collected.

• • A cookie policy that describes why and how cookies are used and how users may opt out.

• • A process to report unauthorized access to personal data.

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Cookie policies do not just empower EU citizens. They also protect merchants from lawsuits by unsatisfied customers who claim unfair or inappropriate treatment by a company.

Do You Need a Cookie Policy on Your Website?

Any e-commerce platform you choose will require you to create your own privacy policy. Thankfully, there are tools to help you do so. For example, to draft a privacy policy for Shopify, the platform offers a tool to guide you.

To limit the data collection of European customers (from the EU, EEA, UK, and Switzerland) visiting your Shopify store, you can select the level of restrictions for marketing and analytics data collection in your Shopify Admin.