As digital advertising becomes more data-driven, privacy concerns have become central to marketing strategy. Retargeting relies on tracking user behavior, storing identifiers, and delivering personalized ads—all of which raise legal and ethical questions.

For businesses operating in or targeting users in Europe, the most important regulation is the General Data Protection Regulation (GDPR).

In 2026, major advertising platforms such as Google Ads and Meta Platforms, Inc. provide built-in privacy tools. However, compliance ultimately depends on how advertisers collect, store, and use data.

This article explains whether retargeting is GDPR-compliant, what the law requires, and how to run legal, ethical retargeting campaigns.

Understanding GDPR and Retargeting

What Is GDPR?

GDPR is a European data protection law that regulates how personal data is collected, processed, and stored.

It applies to:

• Businesses in the EU

• Businesses targeting EU users

• Companies processing EU residents’ data

Even non-European companies must comply if they reach EU audiences.

Why GDPR Affects Retargeting

Retargeting depends on:

• Cookies

• Pixels

• Device identifiers

• IP addresses

• User behavior data

Under GDPR, many of these qualify as personal data.

This means retargeting is legally regulated.

Is Retargeting Legal Under GDPR?

The Short Answer

Yes—retargeting can be GDPR-compliant, but only if it follows strict rules.

It is not automatically legal.

Compliance depends on:

• User consent

• Transparency

• Data handling practices

• Security measures

Without these, retargeting may violate the law.

The Key Principle

GDPR does not ban retargeting.

It regulates how it is done.

What Counts as Personal Data in Retargeting?

Under GDPR, personal data includes any information that can identify a person directly or indirectly.

In retargeting, this includes:

• Cookie IDs

• Mobile advertising IDs

• IP addresses

• Account identifiers

• Hashed emails

• Location data

• Browsing behavior

Even “anonymous” IDs can be personal data if they can be linked back to a user.

Legal Basis for Retargeting Under GDPR

To process personal data, you must have a legal basis.

For retargeting, the main bases are:

1. Consent (Most Common)

User explicitly agrees to tracking and advertising.

This is the safest approach.

2. Legitimate Interest (Risky)

Some companies argue that advertising is a “legitimate interest.”

However, regulators increasingly reject this for retargeting.

In most cases, consent is required.

Best Practice

Use explicit, opt-in consent.

Do not rely on legitimate interest for retargeting.

Consent Requirements for Retargeting

What Is Valid Consent?

GDPR requires consent to be:

• Freely given

• Specific

• Informed

• Unambiguous

• Revocable

Pre-checked boxes and vague notices are not allowed.

Cookie Consent Banners

Most websites use consent banners to collect permission.

A compliant banner must:

• Explain tracking clearly

• Offer “Accept” and “Reject” options

• Allow granular choices

• Work before cookies load

Tracking before consent is illegal.

Example of Good Consent

“Allow us to use cookies for personalized advertising and retargeting.”

User must actively agree.

Example of Bad Consent

“By using this site, you agree to cookies.”

This is not valid under GDPR.

Transparency and Privacy Notices

Why Transparency Matters

Users must know:

• What data is collected

• Why it is collected

• How it is used

• Who receives it

• How long it is stored

Hidden tracking violates GDPR.

Privacy Policy Requirements

Your privacy policy should clearly explain:

• Retargeting practices

• Third-party partners

• Ad platforms used

• Data retention periods

• User rights

This information must be easy to find.

User Rights Under GDPR

GDPR gives users strong rights over their data.

Retargeting systems must support these rights.

1. Right to Access

Users can request to see what data you have.

2. Right to Rectification

Users can correct inaccurate data.

3. Right to Erasure (“Right to Be Forgotten”)

Users can request deletion of their data.

4. Right to Restrict Processing

Users can limit how their data is used.

5. Right to Object

Users can opt out of profiling and advertising.

6. Data Portability

Users can request their data in usable format.

Practical Impact

You must have systems to respond to these requests.

Ignoring them can lead to fines.

Retargeting and Third-Party Data Sharing

Why Data Sharing Is Sensitive

Retargeting often involves sharing data with:

• Ad networks

• DSPs

• Analytics providers

• Social platforms

Under GDPR, you remain responsible for this data.

Data Processing Agreements (DPAs)

You must have contracts with vendors that specify:

• How data is processed

• Security standards

• Breach procedures

• Compliance responsibilities

No DPA = compliance risk.

Joint Controllers vs Processors

Some platforms act as:

• Data processors

• Joint controllers

This affects liability.

Know your role.

CRM Retargeting and GDPR

Special Risks

CRM retargeting uses:

• Emails

• Phone numbers

• Customer records

This is highly sensitive personal data.

Compliance Requirements

You must ensure:

• Data was collected lawfully

• Marketing consent exists

• Data is hashed

• Users were informed

Uploading purchased lists is usually illegal.

Cookie Lifetimes and Data Retention

GDPR Data Minimization Principle

You should not store data longer than necessary.

Long retargeting windows increase risk.

Recommended Retention Periods

Avoid “forever” storage.

Security and Data Protection

Why Security Matters

Data breaches trigger mandatory reporting and fines.

Required Measures

Use:

• Encryption

• Access controls

• Secure servers

• Regular audits

• Incident response plans

Security is a legal obligation.

How Platforms Support GDPR Compliance

Major platforms provide compliance tools.

Common Features

• Consent mode

• Limited data processing

• Region-based restrictions

• User opt-out signals

• Data deletion tools

However, these do not replace your responsibility.

Example: Consent Mode

If users reject tracking, platforms restrict data usage automatically.

You must configure this correctly.

How to Make Your Retargeting GDPR-Compliant

Step 1: Implement Consent Management

Use a certified consent management platform (CMP).

Ensure no tracking before consent.

Step 2: Update Privacy Policies

Clearly explain:

• Retargeting

• Partners

• Rights

• Contact details

Review annually.

Step 3: Audit Tracking Tools

Check:

• Pixels

• SDKs

• Cookies

• Server tracking

Remove unnecessary trackers.

Step 4: Control Data Sharing

Review vendor contracts.

Limit partners.

Step 5: Set Retention Limits

Automatically delete old data.

Step 6: Train Staff

Ensure marketing teams understand GDPR rules.

Human error is a major risk.

Common GDPR Compliance Mistakes

1. Tracking Before Consent

Most common violation.

2. Vague Privacy Notices

Lack of transparency.

3. Ignoring User Requests

Leads to complaints.

4. Over-Retention of Data

Keeping data too long.

5. Unverified Third Parties

Sharing with non-compliant vendors.

6. Assuming Platforms Handle Everything

They do not.

Responsibility remains with you.

Penalties for Non-Compliance

GDPR fines can reach:

• Up to €20 million

• Or 4% of global turnover

Plus:

• Legal costs

• Reputation damage

• Loss of customer trust

Compliance is cheaper than penalties.

Retargeting Under GDPR vs Other Laws

GDPR vs CCPA vs LGPD

Global advertisers must comply with multiple laws.

GDPR is the strictest.

Future of Privacy and Retargeting

By 2030, retargeting will be:

• First-party data driven

• Cookie-light

• Consent-native

• Server-side

• Clean-room based

Privacy-first design will be standard.

Best Practices Summary

• Collect explicit consent

• Use compliant banners

• Be transparent

• Limit data retention

• Secure all data

• Respect user rights

• Audit regularly

• Train teams

• Review vendors

• Document processes

Compliance is ongoing, not one-time.

Conclusion

Retargeting is not illegal under GDPR—but it is highly regulated. To be compliant, businesses must obtain valid consent, be transparent about data use, protect user information, respect privacy rights, and limit data retention.

Companies that treat GDPR as a core part of their marketing strategy—not just a legal checkbox—build stronger trust and long-term customer relationships.

In 2026 and beyond, privacy-compliant retargeting is not just a legal necessity—it is a competitive advantage.