What is consent management?

As a website owner or business owner, you know how important it is to manage user data responsibly. With increasingly strict data protection laws such as GDPR, it is becoming more and more challenging to meet legal requirements. 

Consent management plays a crucial role here. It ensures that you’ve received the consent of your website visitors for processing their data on your website, and that it’s recorded transparently and managed in accordance with the law.  

Managing consent protects you and your company from legal risks, while also creating trust among your users. When you provide your visitors with clear and user-friendly consent, you show respect for their privacy, strengthening your brand and boosting your business. This is exactly where consent management comes into play. 

What does consent management mean? 

Consent management refers to the systematic management of user consent to personal data processing. It helps companies stay legally compliant by transparently collecting, storing, and managing visitor consent. 

Basic principles 

In the digital age, websites and apps collect a large amount of user data, whether through cookies, forms, or personalised advertising. Consent management helps inform users about the data being collected and lets them make a conscious decision about the information they want to share. 

The most important basic principles of a consent management system (CMP) are:  

• Transparency: Users must be clearly informed about what data is collected and what it is used for.  

• Voluntary: Consent may not be forced and the user must be able to revoke it at any time.  

• Legal compliance: Companies must comply with applicable data protection laws and document consent.  

• User experience: An effective CMP makes it easier to choose data protection options and makes the process easier to understand. 

Why consent management is necessary  

Companies are legally obliged to process personal data only with explicit consent. Regulations such as the GDPR in the EU ensure that users remain in control of their information.  

A reliable consent management system (CMP) helps organisations comply with these regulations by collecting, documenting, and managing consent in a legally compliant manner.  

Later in the article, we will show you how you can manage this easily and legally compliant with tools from Termly.   

Build trust with customers through transparent data processing  

Today’s users are more privacy-conscious and expect companies to handle their data responsibly. Transparent handling of user data strengthens customer trust. When companies clearly communicate how and why data is collected, users are more likely to accept personalised content, advertising, and usage of data for analytics.  

User-friendly consent management shows that your data protection policies are more than a legal requirement. Rather, they are a conscious decision to respect users’ privacy. 

Risks of missing or inadequate consent management 

Without effective consent management, companies expose themselves to legal and financial risks. Violations of data protection laws can lead to high fines, as has already happened to several large companies.  

In addition, a lack of transparency or poorly implemented consent management can permanently damage customer trust, which in turn can lead to lost revenue. High bounce rates on websites are often related to non-transparent or intrusive cookie banners. 

Consent management is thus not optional. It’s necessary for compliance with data protection regulations, strengthening brand trust, and avoiding long-term legal and economic risks.  

How does a consent management system (CMP) work?  

A consent management system is a technical solution that enables companies to collect, store, and manage user consent for data processing in compliance with privacy laws. It ensures adherence to data protection regulations, while giving users have full control over their data. 

Storage, management, and processing of user consent 

A CMP stores user consent in a database, either locally on the website’s server or in a cloud solution. It records the following information:  

• Time and type of consent (e.g. for cookies or personalised advertising)  
• Changes or withdrawal of consent  
• Technical details for the identification of the user (e.g. device or IP address) 

Through automated processing, the CMP ensures that only the data allowed by the user is collected. 

Automation of cookie banners and privacy policies  

CMPs simplify compliance by automatically displaying the right consent options for cookie banners and privacy policies depending on the user’s location and applicable legislation. They offer user-friendly choices for different cookie categories and automatically integrate updates for legal changes.  

These automatic options and updates boost transparency for users and make the entire data protection process more efficient for companies. 

Integration in websites and apps  

CMPs are usually integrated into websites and apps as plugins or external scripts. They can be linked to analytics and advertising platforms such as Google Ads or Meta Pixel, integrated with content management systems (CMS) such as WordPress or Shopify, or connected to backend systems to align data management with internal processes.  

There is an even simpler way: 

Termly from one.com

If you choose Termly from one.com and already have your website on one.com, then you can easily add Termly from the control panel. Check out our guide to getting started with Termly for all the important information you need to get started.  

If you have a website with another provider, you can still order it and benefit from its great features by installing it yourself. 

Data protection laws and their requirements  

There are privacy laws that protect users’ personal information and set clear rules for companies that work with that data. One of the most important data privacy laws in the EU is the GDPR. 

GDPR overview 

The GDPR (General Data Protection Regulation) is the most comprehensive data protection law in the EU. It sets strict requirements on the processing of personal data, and states that users have the right to be informed about the use of their data, to consult regarding usage of their personal information, and to withdraw their consent at any time. 

Practical implementation of legal requirements  

Compliance with data protection laws requires a combination of technical and organisational measures. Implementing a CMP is useful for managing user consent. Moreover, cookie banners and your site’s privacy policy should be clear and understandable. Carrying out regular data protection checks helps ensure compliance. 

Companies that deal with these requirements at an early stage minimise legal risks and strengthen the trust of their customers. 

Best practices for effective consent management  

A well-designed CMP ensures compliance with data protection laws, improves the user experience, and builds trust in a website. Tools like Termly help businesses and organisations efficiently manage consent and keep up with changing regulatory requirements. 

Design of user-friendly cookie banners  

A cookie banner should be clear, engaging, and easy to understand. Important points are:  

• Clear language: No complicated legal formulations. Instead, make sure explanations are easy to understand.  

• Intuitive choices: Users should be able to quickly decide between “Accept all”, “Essential cookies only” or an individual selection.  

• Appropriate design: An unobtrusive design ensures that the banner is not perceived as distracting and allows for natural interaction. 

Clear and understandable consent options 

Consent be legally compliant and transparent for the user. This means:  

Detailed information: What data is collected? Who has access to it?  

Easy revocation: Users must be able to change their settings or withdraw their consent at any time.  

Categorisation of cookies: A clear distinction between essential, analytical, and marketing cookies helps users make a decision. 

Does this all sound like a big challenge?  

It doesn’t have to be! Termly’s tools make compliance easy with customisable cookie banners that meet current GDPR requirements. Curious about what else Termly covers? See the full list here: What laws does Termly cover?  

With Termly, you can easily and quickly make your website legally compliant. Generate essential legal texts, manage user consent effortlessly, and get started in under 5 minutes.   

Komplette Cookie-Management-Lösungen wie Termly  

Wer sich nicht mit Technik und rechtlichen Details herumschlagen möchte, kann auf Lösungen wie Termly setzen. Termly bietet ein automatisches, DSGVO-konformes Cookie-Banner, das sich leicht in jede Website einfügen lässt. Der große Vorteil: Automatische Updates, rechtssichere Vorlagen und eine einfache Einrichtung – ohne technisches Wissen. 

Es ist also möglich, ein Cookie-Banner selbst zu programmieren, aber diese Lösung ist technisch anspruchsvoll und fehleranfällig.  

Die Einrichtung eines Cookie-Banners ist technisch und rechtlich komplex. Wer sich nicht ständig mit Datenschutzbestimmungen, neuen Gesetzen und manueller Wartung beschäftigen möchte, sollte auf eine professionelle Lösung setzen, die rechtssicher, zuverlässig und wartungsfrei ist. Mit dem professionellen Cookie-Consent-Tool wie Termly sind Sie daher deutlich besser beraten.  

Regular review and adaptation of the data protection guidelines  

Data protection requirements are constantly changing, which means companies should regularly review their consent management solution and adapt it to new legal requirements: 

• Updates in case of legislative changes  
• Review of consent texts for readability 
• Customisation of cookie banners and settings according to user feedback 

CMPs like Termly offer automatic updates, so your business can stay up-to-date and quickly implement changes to privacy policies. 

Challenges and future of consent management  

Consent management faces technical and legal challenges, as data protection laws such as the GDPR are constantly being adapted. Organisations need to regularly update their systems to stay compliant while providing a user-friendly solution. 

The increasing use of AI and data-driven advertising is changing the digital market. Advertisers are turning to personalised content, which reinforces the need for transparent and effective consent management. AI can help automate consent processes, but at the same time, new questions about data protection are emerging. 

Future-proof solutions rely on intelligent technologies that adapt flexibly to legal changes. Tools like Termly provide organisations with a scalable way to manage privacy policies and build user trust. 

Who needs consent management?  

Whether it’s a helpful tool or a legal must-have, we’ve broken down who benefits from implementing a consent management platform: 

• Company: with online shops (e-commerce) 

• Associations and non-profit organisations: for donation forms and member tracking, as well as membership management and newsletter distribution. 

• Freelancers and self-employed individuals: customer management and analysis tools. 

• Virtual assistants: chatbots, AI-powered customer support, voice assistants 

• Advertising agencies: usage of tracking tools and personalised advertising 

• Influencers and content creators: for newsletters or advertising partners 

• Gaming websites and online gaming platforms 

• Educational institutions: schools, universities, online learning platforms 

• Healthcare providers: medical offices, hospitals, telemedicine sites 

• Media companies: news portals, blogs, streaming services 

• Online marketplaces: platforms for used products, services 

• Travel and hotel booking portals: for customer profiles 

• Financial service providers: banks, insurance companies, financial consulting with online booking systems for appointments 

• Law firms: for online advice and document management 

• Technology companies: for web apps and cloud services 

• Social networks and community platforms 

• Event and ticket providers: for online registration forms 

• Recruitment agencies: for online application forms 

• Real estate portals: for online offers and customer management 

• Government agencies and public administrations: for digital services 

This isn’t an exhaustive list, but all these small and medium-sized enterprises (SMEs) and organisations have something in common: they collect, store or process personal data on their websites through cookies, contact forms or analysis tools. A consent management system helps ensure compliance and strengthen user trust. 

Consent management is crucial 

Consent management is more than just a legal requirement: it’s a central part of a sustainable data protection strategy. Companies that handle user data transparently and offer clear consent management create trust and avoid legal risks. 

A legally compliant and user-friendly implementation ensures GDPR compliance while enhancing the user experience. With clear cookie banners, understandable options, and regular updates, businesses can stay both data protection-compliant and customer-focused. 

Termly helps you manage consent efficiently and in line with privacy laws. It protects your website and gives users meaningful control over their data—a win for both privacy and your business.