Following the recent increase in litigation regarding pop-up banners on websites where consumers give consent to businesses using website tracking tools like cookies or pixels, National Automobile Dealers Assocation (NADA) has released a 1-page guide titled “Best Practices for Tracking Consumer Website Activity” available at: https://www.nada.org/media/17801/download?inline

Dealerships across the country have reported receiving demand letters from law firms with allegations of the use of a tactic referred to as “trap and trace.” Website tracking is used to enhance the customer’s experience by optimizing websites to user preferences and supporting third party tools like chat platforms or targeted ads. Cookies, pixels and other tracking technologies are common across virtually all industries and sectors to track customer behavior. But it is important that dealers fully understand these technologies and utilize them in a way that protects consumer privacy.The failure to do so can put the dealership at risk of violating the law. 

Website Banners to Obtain Consent

The most common way websites obtain consent for collecting consumer information and informing consumers about what information will be shared with third parties is a pop-up banner where consumers can indicate what information can be collected and shared. Banners should: