Cookie Consent: How to create legally compliant Shopify cookie banners

At the latest since the entry into force of the GDPR 2018, every website and online store operator should be aware that their own web presence must draw attention to the use of cookies by means of a banner.

However, this is not the end of the matter. The highest courts ECJ and BGH have gone one step further and turned a legal gray area into an obligation: the mere reference to the use of cookies is no longer sufficient! Cookies that are not essential and are used for marketing purposes must be explicitly, actively and voluntarily consented to, e.g. by checking a box. No cookies may be set and data processed before this consent has been given. Pre-filled boxes that a visitor would have to uncheck are also not allowed. Thus, both courts have waved through the opt-in requirement and presented challenges to Shopify merchants. We explain how Shopify stores can obtain cookie consent in this post.

Cookie Consent: These types of cookie banners exist

Cookie banners are an important tool for informing users about the use of cookies on a website and obtaining their consent to data collection. There are different types of cookie banners, which differ in their functionality, design and legal requirements.

1. Simple information banner

A simple information banner is the most basic form of cookie banner. It simply informs users that the website uses cookies and provides a button to accept them. This type of banner often does not comply with strict data protection regulations such as the GDPR.

2. Consent banner (opt-in)

A consent banner requests the user's active consent to the use of cookies. Users must explicitly click on "Accept" before cookies are set. This type of banner is usually GDPR-compliant.

3. Opt-out banner (opt-out)

An opt-out banner sets all cookies by default and offers users the option of rejecting cookies or changing their cookie settings. This type of banner can be problematic as it may violate the requirements of some data protection laws that require prior consent.

4. Preference banner

A preference banner allows users to make detailed settings and select which types of cookies they wish to accept. This can include functionality, performance and advertising cookies.

What does the opt-in requirement mean for your Shopify store?

Anyone who uses Shopify as a store system has done everything right in many respects. Only when it comes to legally compliant cookie banners, the commerce platform has some catching up to do - at least when it comes to preset functions. By default, no cookie banner is provided, which is probably also due to the fact that Shopify originally comes from Canada. It is possible to make changes to the theme code in order to place a cookie banner, but this could be a tricky undertaking, especially for merchants without coding knowledge.

There are some apps in the Shopify App Store that enable cookie banners for Shopify stores and limit the risk of warnings. In 2020, Shopify also released its own free cookie consent solution as an app, Customer Privacy Banner. The problem here is that the tool only obtains general consent from the user, but does not allow individual consents for each cookie-based service used on the website. This compromises the voluntariness required by data protection law and means the tool is not 100% compliant.

So what to do?

The solution: Usercentrics

Usercentrics has been one of the leading consent management platforms since 2017 and allows you to adapt your own website or online store for DSGVO and other regulations and become compliant. Companies all over the world use the tool, including big names like T-Mobile, limango, Commerzbank or ProSiebenSat.1 Media SE.

Usercentrics is a fast-growing company that has grown from 40 employees to 150 team members within half a year and has offices in Germany, Denmark, the Czech Republic, the UK, Portugal, Canada and the US.

The Latori team made Usercentrics ready for Shopify and developed the appropriate app for the Shopify App Store to enable legally compliant use of cookies and consent to data processing of individual tools. In an interview with Usercentrics Partner & Project Manager Hilal Jalaludeen and UK Sales Director Zofia Stekla, we found out what makes Usercentrics special, how it can be used with Shopify and which requirements are now covered.

What differentiates Usercentrics from other Consent Management Platform (CMP) tools?

Usercentrics builds bridges and combines two fields that are not combined by most consent platforms: Legal and Marketing. Usercentrics understands both sides and wants to ensure with the compliance tool that marketing expenditures are worthwhile. For this, the Cookie Consent Tool should not only enable compliance for DSGVO and CO. but also ensure that users allow the use of cookies and tracking.

Usercentrics offers over 2,600+ templates for this purpose, which explain to website visitors exactly which cookies are set by which providers and how the information is processed. These templates are constantly updated and kept current, saving online merchants and their privacy officers a lot of work.

Usercentrics works closely with merchants to better understand their needs. Of course, despite legal restrictions, they want to reach as many people as possible with their advertising efforts.

"That's why we have a dedicated marketing team to help us make the banner the best it can be, and we've done a lot of research to do that," says Zofia Stekla.

Individual and customizable: How Usercentrics gets the most out of a cookie consent tool

"If you are an online retailer, your sales depend to some extent on your website. That means if you have a CMP, it also needs to become part of the website and be as configurable as possible," explains Hilal Jalaludeen.

So a certain marketing-friendliness is a prerequisite to increase opt-in rates - a metric that many retailers don't currently have on their radar. Usercentrics provides a KPI that can be used to measure how many opt-ins have been made. Marketing measures can be designed and adjusted based on this metric.

Another important point for brands is that the cookie banner can be customized to become part of the corporate identity. The entire text and look of the banner is customizable and can thus become part of the brand's own website.

Usercentrics App: How can Shopify merchants use Usercentrics?

Of course, it's important for any Shopify customer to use a content management platform that is compliant and easy to set up. Since the first port of call for Shopify merchants is usually the Shopify App Store, and Usercentrics wants to provide a solution for the major e-commerce platforms, it was clear that a Shopify app had to be developed. Searching for the right developer agency for Shopify, Usercentrics finally came across Latori in February 2021 and the development of a joint app began.

What did the Usercentrics app for Shopify need to be able to do?

Hilal: "We wanted to focus primarily on small and medium-sized businesses and automate as much as possible. The implementation of the CMP must be simple, so that Shopify never has to be left," Hilal Jalaludeen describes the initial requirements. The app currently specializes in DSGVO compliance.

Merchants have been able to download the app from the App Store since July and get started with the settings. The app accesses the Shopify authentication, so that no additional account with Usercentrics needs to be created. Privacy policy, imprint and the tools used can then be stored to finally go live with an individual banner. The setup is easy and quick to perform and thus time-saving.

"Any online store - small or medium size - that needs a compliant solution for the GDPR can use our app. It is offered in English and German, with the end product, namely the banner, available in over 60 languages. For those who are based here in Europe or are a global player with a headquarters in Europe, the Usercentrics app is just the right thing," Hilal said.

The Usercentrics Cookie Manager app costs $6 per month and can be tested for free for 30 days.

Click here for the Cookie Consent App for Shopify

What is planned for Usercentrics in the future?

Usercentrics' Shopify app in particular is currently all about cookies and GDPR compliance, but that won't remain the case exclusively, reveals Zofia Stekla. "Usercentrics is a company where new services are constantly being developed. Our portfolio is constantly expanding as our partner network is also growing and regulations are continuously coming out around the world that we need to respond to with our legal team. For this reason, we also have a few more things planned for Shopify to integrate into the app."

As a result, the collaboration with the Latori team will continue. "We want the app to be maintained and developed further. We also need to gather a lot of feedback. That's happening as an ongoing process this year and next. Latori is also very important to us in terms of support, as the team provides first-level support for the Usercentrics app. So we maintain a very close relationship with Latori," Zofia Stekla continued.

Usercentrics will continue to grow rapidly - even independently of the app created - and prepare for further regulations. Currently, the platform already allows websites to appear compliant with DSGVO, CCPA (California) or LGPD (Brazil). The company's legal team is already taking care of further regulations. Of course, online retailers should not disregard the fact that every company should have its own data protection officer and that it is their own responsibility to comply with regulations. However, Usercentrics will continue to provide all tools to make its customers' web presences safer from warnings and fines in the future.