At Domaine, we’ve seen firsthand how the challenges around consent management have impacted (and frustrated) clients using GA4.
This article explores these challenges, as well as the high-level strategic considerations for consent management and the tools that can help streamline compliance efforts—whether it’s adapting to specific laws or managing consent globally.
Please note: The content of this article is for informational purposes only and does not constitute legal advice. Please consult your legal counsel for advice tailored to your specific brand or situation.
What is consent management, anyway?
Consent management is about asking for and managing permission to collect and use customer data (like cookies). It also involves addressing how IP addresses, user identifiers, and other user data are handled.
Cookies are essential for gathering insights into how customers interact with your site. But under GDPR, you need to get user consent first. Without it, the data you collect for things like analytics and marketing should be limited.
Need help managing cookies on Shopify? Check out this guide.
Why is consent management so important?
Two reasons:
- It’s the law: Privacy rules like GDPR (protecting EU citizens) or CCPA (protecting California residents) require certain businesses to get explicit consent before gathering and using customer data.
- To keep customers happy: Being open about how you handle data builds trust with your customers.
Consent management platforms aim to make this easier by automating consent tracking and keeping your data management practices compliant with regulations.
If consent isn’t managed correctly, it can lead to data loss, ineffective tracking, or legal penalties. That’s why it’s important to have a solid management strategy and tools in place.
How Shopify helps you manage consent
Shopify provides basic tools to help you stay compliant, like cookie banners. But if your business needs are more complex—say, operating in multiple regions—you might need a consent management platform (CMP) to handle things more efficiently, such as OneTrust.
For more on international regulations, check out our Internationalization Guide for Shopify.
What you need to know about GA4 & consent management
Why you need ‘Consent Mode’
GA4 requires Consent Mode if you’re collecting data in the European Economic Area (EEA). Consent Mode allows you to adjust how Google tags behave based on user consent, aiding compliance by modifying the type of data collected rather than stopping it entirely. Without Consent Mode, you could lose access to features like ad personalization and remarketing through Google Ads, but setting up Consent Mode and making sure it’s working properly with your existing tech stack can be complicated because it involves passing consent signals through Google tags.
Domaine’s Tip: Implementing Consent Mode in coordination with your development team can ensure consent signals are properly passed through Google tags and integrated with your existing tech stack. With privacy considerations we are also seeing bigger discrepancies between sessions, transactions, and revenue data in GA4 and in Shopify– but leveraging server-side tracking can help mitigate this. Our team helps Shopify merchants implement this setup without losing access to critical marketing features.
Is Google Analytics GDPR compliant?
Short answer: not necessarily.
Google Analytics doesn’t inherently comply or fail to comply with GDPR—it depends on how you configure and use it. One of GA4's significant downfalls is its U.S.-based data storage, which can violate GDPR's data transfer rules, however legal safeguards such as Standard Contractual Clauses (SCCs) can be used to assist compliance with GDPR’s data transfer requirements. In addition, the new GA4 version attempts to improve Universal Analytics by adding more robust privacy features, but challenges still remain.
Despite some privacy-friendly features, like IP anonymization and data deletion capabilities, GA4 transfers personal data to the US for processing. This can be a problem because GDPR has strict rules about sending personally identifiable information (PII) outside of the EU to countries that don’t have the same level of data protection. The issue is that US laws can allow authorities to access that data, which goes against GDPR’s standards for protecting personal information. To comply, extra legal safeguards are needed, but it’s still a gray area for many businesses.
Since GA4 doesn’t allow users to select where data is stored, merchants need alternative solutions to follow GDPR compliance.
Some workarounds to help mitigate risks may include:
- Server-side tagging: Process and store data within the EU before sending it to GA4 to reduce compliance risks; however, data transfers to non-EU regions still require legal safeguards, like SCCs, to fully comply with GDPR.
- Use alternative tools: Explore GDPR-compliant analytics platforms that offer EU-based data storage.
- Legal safeguards: Implement Standard Contractual Clauses (SCCs) to legally transfer data between regions.
With any workarounds, it’s important to consult with your legal team for your business’s specific situation and to ensure compliance with all applicable laws.
Beyond data transfer concerns, GDPR also requires merchants to obtain explicit consent for data collection, limit the type of data processed, and provide clear user privacy policies.
Considerations for consent management & how they impact your business
If only it were as easy as ticking a compliance box, but there’s a lot of nuance in navigating consent management for ecommerce brands.
Here are some higher-level considerations and how they could influence your business operations.
Reduce legal risks & avoid fines
By handling data according to GDPR regulations and by-the-book consent management practices, you reduce the risk of fines or legal action. This protects your business and keeps you audit-ready.
Build customer trust
In general, we’ve become much more protective and aware of how our personal data is managed online. Having transparent consent shows customers you respect their privacy and will handle their personal data diligently.
Adapt to international privacy laws
If your store operates across multiple regions, you may need to tailor your consent management approach for different laws like GDPR (EU), CCPA (California Consumer Privacy Act), and others. Understanding how these laws apply to your business with your legal team is essential, as failure to do so can lead to compliance issues. A solution that supports multi-region compliance is a good option if you need to streamline your operations globally.
Coordinate across teams
Consent management involves more than just the legal team. Marketing needs to know what data they can leverage, IT needs to keep systems compliant, and legal must oversee and verify compliance. Misalignment can lead to compliance failures and operational inefficiencies.
Influence data collection for marketing & personalization
By requesting proper consent, you may collect less data overall. However, the data you do gather will be high-quality, legally compliant, and better suited for meaningful personalization and effective marketing.
Integrate with existing systems
Consent management tools should integrate seamlessly with your existing tech stack, such as Shopify and GA4. This keeps your entire ecosystem compliant, and data can flow smoothly between systems without breaking any rules.
Track & record consent for compliance
Keep detailed records of when and how consent was obtained. This helps demonstrate compliance during audits and prepares you for any legal challenges related to data retention and data privacy policies.
Final thoughts: Navigating GDPR compliance with your Google Analytics setup
With the complexities around GA4, user data, and data processing laws and regulations, achieving compliance might feel daunting. Using a Consent Management Platform (CMP) helps automate and simplify this process, making it easier to manage consent across regions and systems. However, selecting the right CMP and integrating it into your existing setup requires careful consideration.
At Domaine, we regularly help clients assess CMP options like OneTrust or Pandectes to see what fits best with their Shopify setup and business needs.
So if you’re feeling overwhelmed by consent management integrations and configuring your Google Analytics setup to comply with GDPR, first consult with your legal team about your unique needs, and also get in touch with our Domaine experts.
Please note: The content of this article is for informational purposes only and does not constitute legal advice. Please consult your legal counsel for advice tailored to your specific brand or situation.
