At a recent Shopify event, we were genuinely surprised by how many merchants are unknowingly risking their stores - simply because they don’t understand U.S. compliance laws.

Many still believe cookie banners are just for EU stores, while others assume they’re ‘too small’ to worry about regulations.

The truth? Fines are real, enforcement is growing, and states like California, Colorado, and Virginia are already taking active steps.

If you use tools like Facebook Pixel or Google Analytics, you likely need a compliant cookie banner - now.

Let’s break down what you need to know to protect your business.

What Is a Cookie Banner & Why Do You Need One?

You probably already know this - a cookie banner is a small popup or dialog that appears when someone visits your website. 

It shows up to inform visitors that your store uses tracking tools, or cookies, for things like analytics, advertising, and personalization.

But it’s not just informational.

It’s about legal compliance and providing users with control over how their personal data is collected.

Lets look into the legal aspect briefly.

Why this matters, legally:

As a Shopify merchant, you most likely have visitors and buyers from different parts of the world. This means, you are required to handle their data appropriately as per their regional law.

The US itself does not have a federal privacy law, but there are many state laws you need to be aware of as you probably are making sales from customers there as well.

Lets look into some of the most important privacy laws:

1. GDPR (EU/EEA) – Strict Opt-In Consent

If you have EU visitors, the General Data Protection Regulation (GDPR) requires:

• Explicit consent before loading non-essential cookies (e.g., ads, analytics).
• Granular options (separate toggles for different cookie categories).
• Equal "Accept" and "Reject" buttons - no dark patterns.

Penalty: Up to €20M or 4% of global revenue for violations.

2. CPRA/CCPA (California, USA) – Opt-Out Required

If you sell to California residents, the California Privacy Rights Act (CPRA) mandates:

• A "Do Not Sell or Share My Personal Information" link.
• Clear disclosure of data collection (even if you don’t think you "sell" data).

Penalty: $2,500–$7,500 per violation (e.g., Sephora’s $1.2M fine).

3. Other U.S. State Laws (CPA, VCDPA, CTDPA, UCPA)

States like Colorado, Virginia, Connecticut, and Utah now require:

• Opt-out options for targeted ads/data sales.
• Universal opt-out signals (e.g., Global Privacy Control).

Penalty: Up to $20,000 per violation (Colorado).

A note for US merchants:

You may think these laws don’t apply to you - but if you:

• Sell to California residents (or any other state mentioned here)
• Collect personal data
• Use tools like Google Analytics or Meta Pixel

…then you’re likely already subject to a state law, and a cookie banner is a key step in staying compliant.

Example: A Shopify store with a Facebook Pixel tracking visitors for ads could be "selling" data under CPRA, which requires a "Do Not Sell My Personal Information" link.

Myth Busting: 5 Common Misconceptions About Cookie Banners

At recent Shopify events, we noticed a pattern - many US merchants still assume cookie banners aren’t something they need to worry about. Let’s break down the most common myths and set the record straight.

Myth 1: “My store is too small to worry about compliance.”

Reality: Privacy laws don’t just target big corporations. 

In the U.S., regulations like the California Consumer Privacy Act (CCPA/CPRA) apply to businesses that meet certain thresholds - such as annual revenue, number of users, or amount of personal data processed. 

Even if your store doesn’t meet those thresholds today, more states are passing laws with broader scopes, and the bar is only getting lower. 

Starting early puts you ahead of the curve and builds responsible data habits that scale with your growth.

Myth 2: “I don’t use cookies.”

Reality: Even if you haven’t added tracking scripts manually, your store likely uses cookies by default. 

Shopify’s platform, third-party apps, payment processors, embedded videos, and even fonts can all load cookies or tracking elements. 

These trackers may collect personal information like IP addresses or browsing behavior, and that means you’re responsible for disclosing their use. 

If you’re not actively monitoring them, you may be unknowingly violating state privacy laws that require transparency.

Myth 3: “I don’t have any tracking on my store.”

Reality: Many merchants assume that if they aren’t running Google Ads or Facebook campaigns, they’re not doing any tracking. But tracking goes beyond ad platforms. 

Tools like Shopify Analytics, review apps, heatmaps, and live chat widgets often install trackers automatically. These scripts can still collect user data and fall under the same regulatory requirements. 

A cookie banner isn’t just about marketing - it controls consent for many different types of trackers and cookies.

Run a cookie scan (available at Consentmo) and review all your store cookies - you might be surprised to find some hidden trackers.

Myth 4: “This is only for EU stores, not US ones.”

Reality: It’s true that the EU’s GDPR brought cookie banners into the spotlight, but it’s no longer just a European requirement. 

The CPRA in California, as well as similar laws in Virginia, Colorado, Connecticut, and Utah, also require you to notify users of data collection and, in many cases, allow them to opt out. 

Several more states are implementing privacy laws in 2025. 

If you have customers from these states (and you most likely do) cookie banners are a must-have for compliance.

Myth 5: “Users hate cookie banners.”

Reality: What users actually dislike are poorly designed or confusing cookie banners - the kind that are hard to understand or don’t give real choices. 

A correctly set up banner is visible, matches the store theme and is a user-friendly addition to the storefront. 

Aim for simple language to explain that you use cookies; provide granular control for more transparency, and keep the design simple and balanced. 

Here are some of our recommendations:

Merchants who make privacy a part of their user experience are not only staying compliant - they’re creating better relationships with their customers.

What Your Cookie Banner Must Include

Depending on where your customers are located, your banner may need to meet different requirements. 

But generally, a US compliant cookie banner should include the following three key elements:

1. Notice

The CCPA/CPRA doesn’t explicitly require a popup banner - but it does require that consumers be notified about data collection and given a way to opt out of "sales" (which includes cookie tracking for ads).

A cookie banner is the most practical way to disclose tracking.

The notice should include:

• What’s collected (e.g., "We use cookies for analytics and ads").
• A link to your Privacy Policy.
• A "Do Not Sell/Share" link.

2. Consent

In the EU under the GDPR, users must give explicit consent before non-essential cookies are loaded - that means opt-in.

In the U.S., laws like the CPRA (California) require an opt-out option for the sale or sharing of personal data. This distinction matters, and your banner should reflect it based on the buttons displayed.

Keep in mind that opt-out must be as easy as opt-in. If you offer a one-click "Accept Cookies" button, the "Do Not Sell" option can’t be buried in a menu or require extra steps.

3. “Do Not Sell or Share” link

Businesses must provide a "Do Not Sell or Share My Personal Information" link on their website homepage and in cookie banners.

If you're subject to California’s CPRA and you share or sell personal data (even indirectly through tools like Facebook Pixel, Google Analytics), you're required to provide a “Do Not Sell or Share My Personal Information” page. 

This should be visible and functional - often placed in the footer, but also accessible from the banner.

Not sure if your banner is compliant? Install Consentmo and reach out for a free compliance check from a human support agent.

How to Add a Cookie Banner to Your Shopify Store

Hopefully, we managed to explain why your US Shopify store needs a cookie banner.

There are two main ways to implement one:

Option 1: Use a Shopify App (recommended)

The easiest and fastest way is to install a Shopify app like Consentmo (that’s us!).

Our app automatically shows the right type of cookie banner based on your visitor’s location, includes support for GDPR, CPRA, and other global regulations, and you can easily add a “Do Not Sell” page with one click.

Here is an example banner from a US Shopify merchant:

Add a Cookie Banner with Consentmo - no coding required.

Option 2: Build a Custom Solution

For developers or stores with complex setups, it’s possible to build your own solution. 

But keep in mind that this requires ongoing legal updates, geo-targeting, consent logs, and integration with tracking scripts. 

Most merchants prefer using a specialized app to avoid the legal and technical headache.

Conclusion

Navigating U.S. compliance laws may seem overwhelming, but ignoring them could put your Shopify store at risk of hefty fines and legal trouble. Whether you're subject to California’s CPRA, Colorado’s CPA, or other state privacy laws, a compliant cookie banner is no longer optional - it’s a necessity. By debunking common myths and understanding what your banner must include, you can protect your business while building trust with customers. The easiest solution? Use a dedicated app like Consentmo to automate compliance without the hassle. Don’t wait until enforcement catches up - take action now to secure your store and stay ahead of evolving regulations. Your customers (and your peace of mind) will thank you.