“Under the Data (Use and Access) Act 2025, UK businesses could save billions by ditching blanket cookie consents for low,risk ad trackers, slashing compliance costs while boosting ad efficiency by up to 30 per cent.”
As January 2026 enforcement ramps up, advertisers face a pivotal moment: adapt to risk,based rules or risk fines up to 4 per cent of global turnover. This reform promises innovation but demands swift strategy tweaks.
What You’ll Learn
In this comprehensive guide, we unpack the Data (Use and Access) Act 2025 (DUAA) and its implications for UK privacy laws, focusing on cookies and advertising. Key areas we will cover include:
- An overview of the DUAA and its phased rollout through 2026.
- Specific changes to cookie consent rules and exemptions for low,privacy,risk technologies.
- Direct marketing reforms, including the new ‘soft opt,in’ for charities.
- Impacts on automated decision,making and legitimate interests for ad targeting.
- Actionable steps for advertisers to ensure compliance and optimise campaigns.
- Future projections and ICO guidance updates.
Introduction
For UK advertisers, the dawn of 2026 heralds transformative new UK privacy laws under the Data (Use and Access) Act 2025, set to reshape cookie consents and data processing norms. Enacted on 19 June 2025, the DUAA amends the UK GDPR, Data Protection Act 2018, and Privacy and Electronic Communications Regulations (PECR), aiming to foster innovation while upholding individual rights. With phased implementation culminating in key cookie and ad,relevant changes by January 2026, marketers must navigate reduced consent burdens alongside heightened accountability. This article demystifies what these shifts mean for ads, equipping you with strategies to maintain compliance, cut costs, and enhance targeting precision in a post,consent,fatigue era.
Understanding the Data (Use and Access) Act 2025
The DUAA represents the UK’s boldest data protection overhaul since Brexit, balancing economic growth with privacy safeguards. Phased in from June 2025 to June 2026, it introduces flexibilities without overhauling the core UK GDPR framework.
Core Objectives and Phased Timeline
Designed to save businesses over £4 billion in compliance costs over a decade, the Act promotes data,driven ads by clarifying rules on cookies, automated decision,making (ADM), and legitimate interests. Key January 2026 milestones include full enforcement of cookie exemptions and updated ICO guidance on risk,based approaches. Unlike the EU’s rigid ePrivacy Regulation delays, the UK prioritises proportionality, exempting low,risk practices to reduce “annoying cookie pop,ups”.
Who It Affects: Marketers and Advertisers
Any UK,based or UK,targeting entity processing personal data for ads falls under its scope, including publishers, agencies, and tech platforms. Global firms must assess “materially lower” protections for transfers, impacting cross,border campaigns.
Key Changes to Cookie Consent Rules
At the heart of the January 2026 updates are PECR amendments, easing the “one size fits all” consent model that has plagued advertisers since 2011.
From Blanket to Risk,Based Consent
Previously, PECR mandated explicit consent for all non,essential cookies, leading to widespread fatigue and 90 per cent rejection rates on banners. The DUAA introduces exemptions for “low,privacy,risk” cookies, such as statistical trackers and fraud prevention tools, allowing deployment without prior consent if privacy intrusion is minimal. High,risk personalised ad cookies, however, still require granular, opt,in mechanisms.
Exemptions and What Qualifies
Cookie Type | Pre,DUAA Requirement | Post,January 2026 Change | Ad Implications |
Strictly Necessary (e.g., session IDs) | No consent needed | Unchanged | Enables seamless site functionality for retargeting. |
Statistical/Functional (e.g., analytics) | Consent required | Exempt if low,risk; no consent for improvements | Boosts A/B testing without barriers; up to 20 per cent efficiency gain. |
Marketing/Tracking (e.g., personalised ads) | Consent required | Consent only for high,risk; low,risk exempt | Reduces drop,off; ICO to define “low,risk” in 2026 guidance. |
Third,Party (e.g., social plugins) | Consent required | Risk,assessed; exemptions for non,intrusive | Eases affiliate tracking, transforming conversion attribution. |
These shifts could cut banner fatigue by 40 per cent, per ICO projections, revitalising contextual and cohort,based advertising.
Implications for Direct Marketing and Ads
The DUAA extends beyond cookies, refining ad delivery through legitimate interests and soft opt,ins.
Expanded Legitimate Interests for Targeting
A new “recognised legitimate interests” basis deems direct marketing and intra-group data flows as inherently balanced, eliminating full LIA tests for these. This streamlines email and display ads, provided the necessity is proven. For ADM in ad auctions, all lawful bases (except special category data) are now viable, enabling AI, optimised bidding without sole reliance on consent.
Soft Opt, In for Charities and Broader Campaigns
Charities gain PECR’s soft opt-in for emails, mirroring , e-commerce rules: consent inferred from prior support, with easy opt-out. This could amplify nonprofit ad partnerships, while all marketers benefit from clearer profiling rules.
Compliance Checklist for Advertisers
To thrive under January 2026 rules, audit now:
- Conduct a Cookie Audit: Map trackers using tools like Cookiebot; classify by risk per ICO’s forthcoming 2026 statement.
- Update Consent Platforms: Implement granular banners with easy rejects; integrate Google Consent Mode v2 for analytics continuity.
- Revise Privacy Notices: Disclose exemptions transparently; prepare for DSAR limits on vexatious requests.
- Train Teams: Focus on “materially lower” transfer assessments for global ads.
- Monitor ICO Updates: Winter 2025/2026 consultations on ADM and legitimate interests are mandatory reading.
Non, compliance risks escalate: ICO fines now align with UK GDPR’s 4 per cent cap, up from PECR’s £500,000 ceiling.
Future Projections: What 2026 Holds for UK Ads
By mid-2026, expect ICO’s risk-based PECR statement to formalise low-risk exemptions, potentially mirroring the EU’s delayed ePrivacy but with UK agility. Trends include AI-driven contextual ads surging 25 per cent, reduced reliance on third-party cookies, and hybrid models blending exemptions with opt-ins. Economic recovery post-Brexit will channel £2 billion into compliant digital ads, favouring agile brands. Globally, the UK’s model may influence US state laws, enhancing adequacy for transfers.
Conclusion
The January 2026 rollout of new UK privacy laws via the DUAA ushers in a pragmatic era for advertisers, replacing consent overload with targeted exemptions that safeguard privacy without stifling growth. Key takeaways: Embrace risk, base cookie rules to cut fatigue and costs; leverage expanded legitimate interests for efficient targeting; and prioritise audits to dodge fines. By aligning with ICO guidance, UK brands can turn compliance into a competitive edge, ensuring ads remain effective and ethical in 2026 and beyond.
Ready to Future-Proof Your Ad Strategy?
At Be More Social, we help UK brands navigate privacy shifts with tailored compliance audits and optimised campaigns. From cookie overhauls to ADM integrations, our experts ensure your ads drive ROI without regulatory risks. Book a free consultation today and safeguard your 2026 success.
Frequently Asked Questions About New UK Privacy Laws & Cookies Changes for Ads
As January 2026 approaches, UK advertisers seek clarity on the DUAA’s impacts. Below, we address common queries using 2025 data and ICO projections to guide your planning.
Phased implementation runs from June 2025 to June 2026, with low,risk exemptions and risk,based enforcement fully active by January 2026. ICO guidance updates follow in winter 2025/2026.
Yes, for high,risk trackers involving behavioural profiling. Low,risk ones, like fraud prevention, are exempt, reducing banner reliance by up to 40 per cent.
It broadens lawful bases for ADM (excluding special category data), enabling legitimate interests for AI bidding. ICO consultations refine this in early 2026.
Fines align with UK GDPR: up to £17.5 million or 4 per cent of global turnover. ICO prioritises cookie and marketing breaches, with 134 warnings issued in 2025.
Absolutely; the new soft opt,in allows inferred consent from supporter data, boosting email campaigns. Pair with low,risk cookies for efficient nonprofit ads.
