Cookie Compliance Under UK GDPR and DUAA 2025: What SMEs Need to Know

6 minutes read
Laptop showing a cookie consent banner with accept and reject options for UK cookie compliance

Cookies are a core part of modern web design. They keep your shopping cart items in place, remember your language preference and help websites understand how visitors use their pages. Yet cookies also raise significant privacy concerns. In the United Kingdom, the UK General Data Protection Regulation (UK GDPR) and the Privacy and Electronic Communications Regulations (PECR) govern how organisations can deploy cookies. The forthcoming Data (Use & Access) Act 2025 (DUAA) strengthens these rules, making cookie compliance even more important for small and medium-sized enterprises (SMEs). This guide explains the types of cookies, why consent matters and how to align your practices with the law.

What Are Cookies and Why Do They Matter?

A cookie is a small text file placed on your device when you visit a website. Cookies help sites function properly, remember your preferences and understand how visitors interact with the site. For businesses, cookies enable analytics, personalise content and support targeted advertising. However, they also collect personal information such as IP addresses, device identifiers and browsing behaviour. Because this data can sometimes identify a person, it is subject to data protection laws.

The UK GDPR recognises that cookies involve processing personal data. Under PECR, organisations must obtain consent before storing or accessing information on a user’s device, except where the cookie is strictly necessary for the service requested by the user. Non-essential cookies – including those used for analytics, functionality and marketing – require valid consent. With regulators imposing higher fines and the DUAA raising the bar for accountability, SMEs cannot ignore these obligations.

Categories of Cookies

Understanding the different types of cookies helps you determine which require consent and how to communicate their purpose. The main categories are:

  • Strictly Necessary Cookies: These are essential for the website to function, for example for security and load balancing. They do not require user consent but must still be explained in your cookie notice.
  • Performance or Analytics Cookies: These cookies collect data about how visitors use your site, such as which pages they visit and how long they stay. Tools like Google Analytics fall into this category. Because they are not essential, you need consent before placing them.
  • Functionality Cookies: These remember user preferences and settings, such as language or region. They enhance the user experience but are not strictly necessary, so consent is required.
  • Marketing or Advertising Cookies: These track users across websites to display relevant ads and measure campaign performance. They often involve third parties and require explicit consent.

Knowing which cookies you use and why you use them is the first step towards compliance.

Consent Requirements Under UK GDPR

Consent under the UK GDPR must be freely given, specific, informed and unambiguous. Pre-ticked boxes, implied consent or bundling consent with other terms are not allowed. Users must understand what they are agreeing to and should be able to withdraw consent as easily as they give it. Your cookie banner should clearly state the categories of cookies, allow users to accept or reject each type and link to a detailed cookie policy.

Your cookie notice should explain what cookies are, list the cookies used on your site and describe their purpose, expiry and whether they are set by you or a third party. Athlex’s cookie notice outlines plans to provide a full list of cookie names, purposes and expiry dates. It also reminds users that they can manage preferences via the cookie banner or browser settings. Providing this level of detail helps build trust and meets regulatory expectations.

New Rules Under the DUAA 2025

The Data (Use & Access) Act 2025 introduces stricter requirements for cookie consent. The Act clarifies that cookie banners must be clear and separate from other requests. It confirms that pre-ticked boxes and implicit consent are not acceptable and that users must have a genuine choice and be able to withdraw consent as easily as they give it. These rules reinforce existing UK GDPR principles but emphasise enforcement. SMEs should audit their cookie practices now to prepare for these changes.

Third-Party Cookies and Marketing

Many websites rely on third-party services for analytics, advertising or social media integration. Third-party cookies may be set by companies like Google, LinkedIn or Mailchimp. When you use these services, you remain responsible for informing users about the cookies and obtaining consent. You should list each third party in your cookie notice and link to their own privacy or cookie policies. The DUAA’s focus on electronic marketing rules means that organisations that send targeted ads must be especially careful to document and manage cookie consents.

How to Achieve Compliance

  1. Audit Your Cookies: Identify all cookies used on your site, their purposes and whether they are first- or third-party. Pay special attention to scripts and plugins that may add cookies without your knowledge.
  2. Update Your Cookie Policy: Ensure your cookie policy is comprehensive and up to date. Use clear language to describe each cookie category and its purpose. Provide information about how users can manage their preferences and withdraw consent.
  3. Implement a Consent Management Platform: Use a compliant cookie banner that allows users to accept or reject cookies by category. The banner should not obstruct access to strictly necessary services and should not disappear until the user makes a choice.
  4. Record Consent: Keep records of user consent, including time stamps and the version of your cookie policy in place at the time. This documentation is essential if regulators investigate your practices.
  5. Review Third-Party Services: Check that your third-party providers also comply with the UK GDPR and DUAA. You may need to update contracts to ensure they assist with consent management and honour users’ choices.
  6. Monitor Changes: Cookie laws evolve. Follow updates from the Information Commissioner’s Office and review your cookie practices regularly. The DUAA is being rolled out in stages, so more guidance is expected in the coming months.

Benefits of Compliance

Beyond avoiding fines, strong cookie compliance improves user trust. Transparent communication about how you use data shows that you respect privacy. It can also improve the quality of your analytics because users who knowingly opt in are more engaged. Finally, compliance helps future-proof your business as regulators around the world tighten privacy rules.

Conclusion

Cookies are powerful tools that enhance websites but must be used responsibly. For SMEs, the combination of UK GDPR, PECR and the upcoming DUAA 2025 means that cookie compliance is no longer just a technical issue – it is a strategic imperative. By auditing your cookies, updating your policies, obtaining valid consent and keeping clear records, you can meet regulatory requirements and build lasting customer trust. Now is the time to get your cookie house in order before the new rules take effect.

 

Understanding the Data (Use & Access) Act 2025: What UK Businesses Need to Know

5 minutes read
A business professional in a blue jumper reviews data protection documents at a desk with a closed laptop and coffee, representing DUAA 2025 compliance.

Why Was the DUAA Introduced?

The DUAA aims to modernise the UK’s data protection regime, ensuring that individuals have better control over their personal data while enabling organisations to innovate responsibly. It responds to new technologies, data‑driven business models and concerns about transparency. The Act builds on the UK GDPR framework rather than replacing it, so businesses must view it as complementary rather than separate.

Key Changes under the DUAA

1. Increased Fines for Electronic Marketing

The DUAA raises the maximum penalties for breaches of PECR. Companies can now face fines of up to £17.5 million or 4% of their global turnover, whichever is higher. This brings electronic marketing fines in line with those under the UK GDPR. Any business that sends marketing emails, texts or calls should review consent processes and records to ensure compliance.

2. New Rules Around Cookie Consent

The Act introduces stricter requirements for cookie consent under UK GDPR. Companies must ensure that cookie banners are clear and separate from other requests. Pre-ticked boxes and implied consent are not acceptable. People must have a genuine choice and be able to withdraw consent just as easily as they give it. Businesses should audit their cookie practices, update consent tools and keep records of consent.

3. Stronger Powers for the ICO

The Information Commissioner’s Office gains broader authority to compel businesses to provide information, reports and interviews as part of investigations. Failure to cooperate may lead to enforcement action. Businesses should keep thorough records of processing activities and be prepared to demonstrate compliance quickly if asked.

4. Expansion of Subject Access Rights

The DUAA reinforces the right to access personal data, requiring more detailed explanations of how data is used and shared. Organisations must be transparent about data sources and how decisions are made using personal data. This ties in closely with DSARs, making it even more important to have a robust process for responding to data requests.

5. Automated Decision‑Making Controls

The Act introduces new restrictions on automated decision‑making that significantly affects individuals. Businesses must provide human oversight, explain the logic behind decisions and allow individuals to contest them. Sectors using AI and machine learning—such as finance, insurance and recruitment—must ensure their systems meet these requirements.

Practical Steps to Comply

1. Audit Your Marketing Activities

Review how you collect and store consent for marketing communications. Ensure you can demonstrate a lawful basis for all electronic marketing. Update marketing databases to remove contacts without valid consent. For B2B marketing, confirm that you are complying with relevant exemptions and that messaging remains within legal boundaries.

2. Update Cookie Policies and Banners

Conduct a cookie audit to understand what tracking technologies your site uses and why. Update your cookie notice to clearly describe categories, purposes and retention periods. Implement a consent management platform if necessary, ensuring that individuals can easily change their preferences.

3. Strengthen Record‑Keeping

Maintain up‑to‑date records of processing activities, including data flows, legal bases, retention periods and third‑party sharing. If the ICO requests evidence of compliance, having organised records demonstrates accountability and saves time. Regularly review and update your records to reflect changes in processing.

4. Review Automated Decision‑Making Processes

Identify any processes that use algorithms or profiles to make decisions that could significantly affect individuals. Assess the legal basis for using automated decisions and whether human oversight is provided. Update privacy notices to explain these processes and develop procedures to address challenges from individuals.

5. Train Staff

Your employees are the first line of defence against non‑compliance. Provide training on the DUAA, focusing on marketing, cookie consent, data subject rights and automated decision‑making. Raise awareness of increased fines and the importance of cooperation with the ICO.

Impact on SMEs

Some SMEs might assume that new legislation primarily targets large corporations. However, the DUAA applies to any organisation processing personal data, regardless of size. Smaller businesses often have limited resources, making it harder to adapt. Yet the cost of non‑compliance—financial penalties and reputational damage—can be far greater than the cost of putting proper systems in place. SMEs should seek professional advice to interpret the Act and prioritise actions based on the data they handle.

How Athlex Supports Your Compliance

Staying on top of evolving data protection laws can be challenging. Athlex specialises in GDPR and privacy compliance for businesses of all sizes. Our consultants can help you conduct a DUAA readiness assessment, update policies and procedures, and train your staff. We provide practical, jargon‑free advice tailored to your industry, ensuring that you understand your obligations and can implement changes effectively. Whether you need a one‑off consultation or ongoing support through our outsourced DPO service, we make compliance manageable.

Looking Ahead

The DUAA is part of a broader trend toward stronger data governance. Businesses should expect further updates as technology evolves and public expectations of privacy grow. By understanding the DUAA and integrating it into your existing compliance framework, you prepare your business for future changes. Adopting a proactive approach—regular audits, employee training and transparent data practices—will position you as a trustworthy organisation in a competitive market.

Conclusion

The Data (Use & Access) Act 2025 introduces significant changes that businesses cannot ignore. Higher fines for marketing violations, tougher cookie rules, expanded subject rights and increased regulatory powers raise the stakes for data protection. By taking practical steps—auditing marketing activities, updating cookie banners, strengthening record‑keeping, reviewing automated decision processes and training staff—you can meet your obligations and build customer confidence. With professional guidance from Athlex, your business can turn compliance into a competitive advantage and navigate the evolving data protection landscape with confidence.

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