What Happens If You Don't Have a Cookie Banner?

The absence of a cookie banner on websites directly contravenes several international data privacy regulations, including the General Data Protection Regulation (GDPR) in the European Union, the Lei Geral de Proteção de Dados (LGPD) in Brazil, and the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada. These frameworks require explicit user consent before any personal data is collected via cookies.

Non-compliance with these laws results in clear legal and financial consequences. According to Article 7 of the GDPR, “the controller shall be able to demonstrate that the data subject has consented to processing of his or her personal data” (GDPR, Art. 7). Without a cookie banner, websites cannot prove such consent, exposing them to enforcement action. Similarly, the LGPD states that “the processing of personal data may only take place with the data subject’s free, informed and unambiguous consent”. PIPEDA also mandates “meaningful consent” for all collection and use of personal information (PIPEDA, Principle 3).

Key risks and observed consequences include:

• Financial penalties: There is documented evidence of significant fines for cookie law violations. In January 2023, France’s data protection authority CNIL imposed a €5 million fine on TikTok for making it difficult for users to refuse cookies. The European Data Protection Board (EDPB) notes that “failure to implement appropriate mechanisms for obtaining valid consent may result in administrative fines up to €20 million, or up to 4% of total worldwide annual turnover” (EDPB Guidelines 05/2020).
• Reputational damage: Organizations found in violation of privacy laws face negative publicity and loss of user trust. “Public enforcement actions and media coverage amplify the reputational risk of privacy non-compliance” (International Data Privacy Law, 2021; Oxford Academic).
• Operational disruption: Regulatory investigations can lead to temporary blocking of web services and mandatory changes to website infrastructure, causing business interruptions.

Summary of findings from regulatory guidance and case law:

• Cookie banners are essential to demonstrate compliance.
• Absence or inadequacy of cookie consent mechanisms results in both direct penalties and indirect costs (legal fees, remediation costs).
• Global data protection authorities are increasing enforcement, especially where user rights to refuse cookies are not respected.

In conclusion, the lack of a cookie banner constitutes a clear violation of major privacy laws, with well-documented financial, reputational, and operational repercussions for organizations. Failure to comply is consistently met with regulatory enforcement and substantial penalties.