It was designed to protect online privacy, by making consumers aware of how information about them is collected. How it is used online, and giving them a choice to allow it or not.
Why Cookie Law?
There are other technologies, like Flash and HTML5 Local Storage that do similar things. These are also covered by the legislation. But as cookies are the most common technology in use, it has become known as the Cookie Law.
What it Means For Business
If you own a website, you will need to make sure it complies with the law. This usually means making some changes.
If you don’t comply you risk enforcement action from regulators, which in the UK means The Information Commissioners’ Office (ICO). In exceptional cases, this can mean a fine.