What you need to know about Google Tag Manager and how it works with cookie consent and the GDPR

Managing Google Tag Manager cookie consent and GDPR compliance is important for businesses operating in the EU, UK, and Switzerland. Here’s what you need to know about Google Tag Manager, cookie consent, and the GDPR.
Resources / Blog / What you need to know about Google Tag Manager and how it works with cookie consent and the GDPR
Published by Usercentrics
7 mins to read
Jul 17, 2024
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Navigating the complexities of GDPR compliance can be challenging, especially when managing cookies and tracking tools on your website. Google Tag Manager (GTM) provides a streamlined solution for handling various marketing and analytics tags. However, ensuring it aligns with stringent data protection laws requires careful setup and management.

We’ll explore how to use GTM effectively while staying compliant with global privacy regulations like the GDPR. We’ll discuss the role of Google Consent Mode, the importance of a consent management platform, and practical steps for configuring GTM to respect user consent.

Whether you’re new to GTM or looking to optimize your current setup, this guide will help you balance data collection needs with user privacy rights.

What is Google Tag Manager?

At its core, Google Tag Manager (GTM) is like a control center for your website’s tracking and marketing tools.

Google Tag Manager is a free tool that enables companies to manage and deploy marketing and analytics tags on their websites or mobile apps without modifying the code. It acts as a centralized system where one can add, edit, and manage various tracking codes and snippets, known as “tags,” from a web-based interface.

Imagine you’re running an ecommerce website and want to track user interactions, analyze traffic sources, and measure conversions. Instead of manually adding separate code snippets for Google Analytics, Google Ads, Facebook Pixel, and other tools directly to your website’s code, you would add a single GTM container code to your site.

Then, using the GTM interface, you can set up and manage all these different tags, defining when and where they should fire based on specific triggers, like page views, button clicks, or form submissions. This approach simplifies tag management, reduces the risk of errors, and enables marketers to make changes quickly without having to constantly rely on web developers to modify the site’s code.

In GTM, there are tags and triggers. Tags are the actual snippets of code you want to run on your site, while triggers determine when these tags should fire. For example, you might set up a Google Analytics tag to track pageviews, with a trigger that fires on all pages. You could also have a conversion tracking tag for Google Ads, with a trigger that only fires when a user reaches the “Thank You” page after completing a purchase.

Does Google Tag Manager use cookies?

The Google Tag Manager code does not use cookies. The one exception is when using GTM’s Preview and Debug mode, where it sets several first-party cookies essential for the preview functionality. These cookies are only set for administrators using the Preview mode and are deleted once you exit it.

While GTM doesn’t use cookies itself, it can be used to implement tags from other tools, like Google Analytics, that do set and use cookies. These third-party tools implemented via GTM are likely to store cookies and process personal information.

Therefore, the tags you implement through GTM may set and use cookies. This is why it’s vital to have proper Google Tag Manager cookie consent mechanisms in place, especially for compliance with privacy regulations like the General Data Protection Regulation (GDPR).

Google Tag Manager doesn’t directly require cookie consent because it doesn’t set cookies, and so doesn’t collect personal information.

However, some tags added through Google Tag Manager may use cookies to track how users interact with a website. For example, Google Analytics uses cookies to collect information about user behavior, such as pages visited, time spent on site, and conversion actions.

Thus, obtaining Google Tag Manager cookie consent is a best practice and potentially necessary to meet GDPR and CPRA regulatory requirements. However, this depends on your marketing tools setup and operations.

Is Google Tag Manager GDPR-compliant?

Google Tag Manager itself is not inherently GDPR-compliant or non-compliant. Its compliance status depends on how it’s used and configured.

By default, GTM does not set cookies or collect personal data on its own. However, it’s commonly used to implement tags from other services, like Google Analytics or advertising pixels, that use cookies and collect personal data. These third-party tags implemented through GTM may require consent under the GDPR.

To use GTM in a GDPR-compliant manner, website owners need to take several steps:

  • audit all tags to be up-to-date on what they are for, what data collection they may trigger, and ensure they are necessary for business operations
  • enable restricted data processing for certain types of personal data
  • install a consent management platform (CMP) to obtain and manage user consent
  • configure tags to only fire after obtaining user consent
  • avoid collecting Personally Identifiable Information (PII) where possible

GDPR data processing using Google Tag Manager

Google Tag Manager (GTM) can play a crucial role in GDPR compliance for websites that use it to manage tracking and marketing tags. As it often deploys scripts and tags that collect personal data. Thus, website owners must ensure that tags implemented through GTM only fire after obtaining proper user consent, in line with GDPR requirements. Under the regulation, website owners are responsible for ensuring that all data processing activities, including those facilitated by GTM, comply with GDPR stipulations.

One key aspect of GDPR compliance in GTM is data minimization. This involves carefully auditing all tags and scripts deployed through GTM to ensure they only collect necessary data. Website owners should regularly review their GTM container to remove any redundant or excessive data collection points.

Another important consideration is the principle of purpose limitation. Each tag in GTM should have a clear, documented purpose for data collection. This documentation can be maintained within GTM using notes and descriptions for tags and triggers, creating an audit trail demonstrating GDPR compliance efforts.

To address privacy regulations like the GDPR and CCPA, GTM offers a Consent Mode framework that enables website owners to adjust tag behavior based on user consent status.

The Consent Mode in GTM supports various consent types for different data collection purposes, such as advertising, analytics, and personalization. Website owners can create Consent Initialization triggers to ensure consent settings are applied before other tags fire. Individual tags can also be configured with specific consent requirements, enabling granular control over data collection practices.

In addition, GTM integrates well with leading consent management platforms, making it easier to implement comprehensive consent solutions.

By leveraging these tools, website owners can ensure their data collection practices comply with global privacy regulations while still gathering valuable insights.

Google Tag Manager and Google Consent Mode

Google Tag Manager and Google Consent Mode work together to help websites manage user consent and comply with privacy laws like the GDPR. Google Consent Mode adjusts Google tags based on user consent status. When used with GTM, it enables precise control over when tags fire and how data is collected.

With this setup, website owners can set default consent states for purposes like analytics, ad storage, and personalization. Tags are configured to respect these consent states, running fully, partially, or not at all based on user choices. This allows data collection to continue in a privacy-respecting manner even if full consent isn’t given.

GTM simplifies implementing Consent Mode by offering built-in variables and triggers for consent management. Website owners can create conditions for tag firing, ensuring tags only execute with the proper consent. This integration helps maintain compliance with privacy laws and improves user experience by respecting privacy preferences while still gathering necessary data.

We’ve put together a checklist to help you obtain valid user consent for privacy compliance.

The consequences of GDPR noncompliance when using Google Tag Manager

Noncompliance with the GDPR when using Google Tag Manager can have severe consequences for businesses.

The penalties for violations can be substantial, with fines of up to EUR 20 million or 4 percent of global annual revenue, whichever is higher, for repeat or particularly serious violations.

Beyond the financial impact, companies can suffer significant reputational damage as customers become increasingly aware of and concerned about their data privacy rights. A breach or misuse of personal data can lead to negative publicity, loss of consumer trust, and a subsequent decline in sales and customer acquisition.

Lastly, non-compliant companies may face legal action from affected parties in jurisdictions that allow it, resulting in costly and time-consuming legal proceedings.

A consent management platform is helpful for organizations using Google Tag Manager to comply with the GDPR for cookie consent. These platforms help websites collect, manage, store, and signal user consent (e.g., with Google Consent Mode) as required by data protection laws.

Integrating a CMP like Usercentrics’ with GTM makes it easier to obtain legally compliant cookie consent through features like customizable banners, an extensive data processing services database, and multi-language support. This helps to ensure transparent consent collection and enables users to easily modify or withdraw their consent.

Usercentrics CMP also tracks and records consent preferences, providing a centralized repository that can be used to demonstrate compliance in the case of a regulatory audit or if a user requests a copy of their personal data, including consent history.

By automating consent management for GTM, CMPs help businesses meet GDPR requirements and build user trust by giving individuals greater control over their data.

Usercentrics understands how important data privacy is to both your business and your customers. That’s why our solution can help you obtain and manage user consent effectively within Google Tag Manager.

Usercentrics CMP integrates seamlessly with GTM using a data layer variable, enabling smooth communication between your GTM settings and the CMP. This integration allows for automated tag management, ensuring that only tags corresponding to consented purposes are fired, respecting user privacy preferences.

Usercentrics also generates customizable consent banners that can be easily implemented through GTM, enabling users to provide granular consent for different types of cookies and data processing purposes.

Experience what Usercentrics CMP can do for you. Sign up for a free trial today