Alex is Sprintlaw's co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
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If you run a startup or small business in Australia, chances are your website (or app) uses cookies in some way - even if you’re not consciously “tracking” anyone. Cookies can power everything from shopping carts and logins to analytics, advertising, and remembering user preferences.
That’s where a cookie notice comes in. It’s the short notice (often shown as a banner or pop-up) that tells people your site uses cookies and, depending on the circumstances, helps you collect consent or let users manage their preferences.
The tricky part is this: cookies aren’t just a “nice-to-have” compliance box. Depending on how you use them, they can interact with privacy laws, marketing rules, and consumer trust. If you get it wrong, you may create legal risk - and you can also lose customers who don’t feel comfortable using your site.
Below, we’ll walk you through what a cookie notice is, when you actually need one, what it should say, and how to make it practical for a growing business.
What Is A Cookie Notice (And Why Should Your Business Care)?
A cookie notice is a message displayed on your website or app that informs users you use cookies (and often similar technologies like pixels or SDKs). It usually appears when someone first visits your website.
From a small business perspective, the point isn’t to add “legal clutter” - it’s to be clear about what’s happening when someone uses your website, and to help you meet your privacy and marketing obligations.
What Cookies Actually Do
Cookies are small files stored on a user’s device (like their phone or laptop). Your website can use them for a range of functions, including:
- Essential functions (e.g. shopping carts, account login sessions, security)
- Preferences (e.g. remembering language, location, saved settings)
- Analytics (e.g. measuring traffic and user behaviour so you can improve your website)
- Marketing and advertising (e.g. showing ads to people who visited your site, measuring ad performance)
Why A Cookie Notice Matters For Startups
In the early days, it’s common to move fast - launching landing pages, installing analytics, setting up marketing pixels, and testing ads. That momentum is great, but it can create hidden compliance gaps.
A well-built cookie notice helps you:
- increase transparency with customers (which supports trust and conversion)
- reduce privacy risk when you collect data through your site
- align your marketing activity with consent expectations (particularly for advertising cookies)
- avoid messy retrofits later, when you’re already scaling
Do You Need A Cookie Notice In Australia?
There isn’t a single “cookie law” in Australia that works exactly like some overseas rules. But that doesn’t mean cookies are unregulated.
In practice, Australian startups and small businesses often choose to use a cookie notice because cookies can involve collecting or handling information about people - which can trigger obligations under privacy and marketing laws, as well as expectations from platforms and partners.
When Cookies Become A Privacy Issue
Cookies can be tied to a person, directly or indirectly. For example, cookie identifiers, device IDs, and behavioural profiles may be treated as personal information depending on how they’re used and whether they can reasonably identify an individual.
If you’re collecting personal information online, you’ll usually also need a clear Privacy Policy that explains what you collect, why you collect it, and who you share it with.
A cookie notice often sits alongside your Privacy Policy as the “front door” notice that flags cookie use right away, while your Privacy Policy contains the fuller detail.
When You’re Using Marketing Cookies Or Pixels
If you use cookies for targeted advertising, remarketing, or behavioural profiling, you’re typically doing higher-risk data activities than basic “site functionality”. That’s where transparency and user choice become especially important.
Also keep in mind that if your website uses cookies or pixels to support electronic marketing (for example, syncing audiences for email/SMS campaigns), you’ll want to make sure your consent and unsubscribe processes comply with the Spam Act 2003 (Cth). A cookie notice won’t replace those consent requirements - but it can help you be upfront about the tracking that supports your marketing.
From a practical risk-management perspective, a cookie notice is a simple way to show that you’re not hiding tracking and that you’re giving users meaningful information and (where appropriate) choices.
If You Sell Online Or Use Email Marketing
If your website funnels into marketing (email sign-ups, campaigns, lead gen, ecommerce), cookies can support that journey. At that point, you’ll often be thinking about compliance more broadly - for example, your ecommerce pages may need clear website terms, returns information, and marketing disclosures.
If email marketing is part of your growth strategy, it can also be worth checking your broader marketing compliance settings, including the rules that apply to electronic marketing in Australia (and how your consent flows work end-to-end). Cookie management is often part of that picture.
If You Have Users Overseas
Even if you’re an Australian business, overseas privacy regimes can apply if you target or have customers in other countries (for example, the EU/UK GDPR). Those regimes can have stricter rules around non-essential cookies and consent. If you operate globally (or plan to), it’s worth designing your cookie notice and consent approach with that in mind.
What Should A Cookie Notice Include?
The best cookie notices are short, clear, and useful. You’re not trying to overwhelm visitors - you’re trying to communicate the key points so people can make informed choices.
While the right approach depends on your site and cookies, most small businesses should consider including the following in a cookie notice.
1. A Clear Statement That Your Site Uses Cookies
This sounds obvious, but clarity matters. A cookie notice should plainly state that your website uses cookies (and similar technologies if applicable).
2. The Purpose Of Cookies (In Plain English)
Give a high-level reason, such as:
- to keep the website working properly
- to improve performance and user experience
- to measure traffic and usage
- to show relevant advertising (if applicable)
This is also where it’s helpful to distinguish between cookie categories (e.g. essential vs analytics vs marketing), especially if you’re offering a preferences tool.
3. A Link To Your Privacy Policy (And Any Cookie Settings Page)
Your cookie notice should usually link to a longer-form document that explains your data handling practices. For most businesses, that’s your Privacy Policy.
A good Privacy Policy should match what you actually do. If you use third-party tools (analytics, payment gateways, marketing platforms), your policy should reflect that at a practical level, including types of data collected and how it may be shared.
4. Any Consent Or Preference Choices You Offer
Many cookie notices include buttons like:
- Accept all
- Reject non-essential (or similar)
- Manage preferences
If you’re offering choices, they should be presented in a way that users can genuinely understand and use. In Australia, overly manipulative design can still create risk (for example, it may undermine meaningful consent, increase complaint risk, and contribute to misleading or unfair impressions under consumer law).
5. A Brief Note About Third Parties (If Relevant)
If your cookies involve third-party tools that collect data (for example, advertising or embedded content), it’s usually a good idea to signal that. You don’t need a technical list in the banner itself, but you should avoid giving the impression it’s all “internal only” if it’s not.
How To Implement A Cookie Notice On Your Website (Without Slowing Your Startup Down)
Startups tend to worry that compliance will slow them down. The reality is that a cookie notice can be implemented in a practical way - as long as you first understand what’s actually happening on your site.
Step 1: Identify What Cookies Your Site Uses
Before you draft wording, you need to understand your cookie landscape. Ask:
- Do we use analytics tools?
- Do we use advertising pixels or remarketing tags?
- Do we embed videos, maps, chat widgets, or social feeds that may set cookies?
- Do we use a hosted ecommerce platform that sets cookies for carts, logins, and payments?
This step matters because your cookie notice (and your Privacy Policy) should reflect reality. If you later add new tools, you should update your disclosures too.
Step 2: Decide Whether You’ll Use “Notice Only” Or “Notice + Consent”
Not every business needs the same setup. Some sites display a cookie notice that simply informs users and points to the Privacy Policy. Others go further and implement a consent mechanism (particularly where marketing cookies are involved, or where overseas laws apply).
What’s appropriate depends on factors like:
- what cookies you use (essential vs marketing)
- your customer base and where they’re located
- your risk profile and brand positioning (for example, health and fintech businesses often choose higher transparency)
- platform or partner requirements (some ad platforms and enterprise customers may expect more robust consent controls)
If you’re unsure, it’s worth getting advice early - it’s usually cheaper to design the right approach up-front than to rebuild your tracking and consent flows later.
Step 3: Align Your Cookie Notice With Your Privacy Policy And Site Terms
Your cookie notice should not live in a vacuum.
At minimum, it should align with:
- your Privacy Policy (what personal information you collect and why)
- your website terms (how users can use the site and your liability settings)
- your customer terms (if you sell goods/services online)
If you’re building an online store or subscription business, your legal setup often includes both privacy documents and commercial terms. For example, a set of Website Terms and Conditions can help set expectations about your site rules and customer relationship alongside your privacy disclosures.
Step 4: Make Sure Your Cookie Banner Is Actually Visible And Works On Mobile
This sounds basic, but it’s one of the most common practical issues we see. Your cookie notice should:
- display properly on mobile and desktop
- not break checkout flows or key buttons
- not cover critical accessibility features
- record user preferences consistently (where you offer those choices)
A cookie notice that is technically “there” but unreadable or broken can be worse than having none, because it signals poor governance and creates confusion.
Common Cookie Notice Mistakes Small Businesses Make (And How To Avoid Them)
Cookie compliance can feel technical, and it’s easy to copy what you’ve seen on other websites. But your cookie notice should match your business, your data practices, and your risk tolerance.
Mistake 1: Using A Cookie Notice That Doesn’t Match Your Actual Tracking
If your cookie notice says you only use cookies “to improve your experience” but you’re also running advertising pixels and remarketing, the notice may be misleading.
Misalignment between what you say and what you do is a common source of complaints - and it can create legal and reputational risk.
Mistake 2: Forgetting About Third-Party Tools
Many startups don’t realise that common website add-ons can set cookies or collect data. This includes:
- embedded video players
- live chat widgets
- booking tools
- social media plug-ins
Even if you don’t “see” the data, it can still be collected through your site. Your cookie notice and privacy disclosures should take this into account.
Mistake 3: Not Updating When Your Website Changes
Your cookie notice isn’t a “set and forget” task. Websites evolve quickly - particularly in startups.
As you add new features (membership logins, referral programs, new analytics tools), you should review whether your cookie notice and privacy disclosures need updating too.
Mistake 4: Treating Cookie Compliance As Separate From Other Legal Foundations
Cookie compliance sits inside a broader legal setup. For many businesses, the same project that introduces cookies also introduces:
- online sales and payment flows (triggering consumer law considerations)
- marketing funnels and lead generation
- new contractors or team members managing data and systems
As your business grows, it’s also worth having the right internal documentation around confidentiality, IP, and data handling - especially if you have developers, marketers, or agencies working on your platforms. For example, having a clear Data Processing Agreement can help allocate responsibilities where personal information is handled by a supplier or service provider.
Key Takeaways
- A cookie notice is a practical way to be transparent with website visitors about cookie use, and it often supports broader privacy compliance for Australian startups and small businesses.
- If your cookies relate to analytics, advertising, or user profiling, you should be especially careful that your cookie notice and privacy disclosures reflect what you actually do - and remember that separate consent rules can apply to electronic marketing under the Spam Act.
- A cookie notice works best when it is aligned with your Privacy Policy and your Website Terms and Conditions, rather than being treated as a standalone banner.
- Start by auditing the cookies on your site (including third-party tools), then decide whether a notice-only approach or a notice + consent approach makes sense for your business (particularly if you have users overseas).
- Cookie compliance is not “set and forget” - if you change your tracking tools, add marketing pixels, or update your website features, your cookie notice should be reviewed and updated.
If you’d like a consultation on setting up a cookie notice and privacy foundations for your website, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
