Privacy and compliance lawsuits are on the rise, driven by the upsurge of tighter laws and sophisticated enforcement tools. These drive-by lawsuits target technical violations by attorneys who have scanned company websites for consent missteps like meaningless cookie banners, missing opt-out options, or inconsistent consent records.  Additionally, the surge in AI adoption has created new avenues where businesses may inadvertently miss consent requirements. AI systems often process data in ways that were not anticipated when the data was originally collected. This, too, creates gaps that drive-by lawsuits or regulatory enforcement can exploit. Either way, the burden then lies on businesses to defend themselves from financial and reputational damage.  

Organizations often underestimate how quickly small gaps in consent or preference management can be spotted and exploited. In this blog, we will discuss what these gaps can be and how businesses can invest in robust and transparent consent practices. 

Learn about Truyo’s Compliance Advisor – a tool designed to identify compliance gaps on your public-facing websites. 

The Weak Links in The Consent Flow 

Regulators expect companies to give their customers meaningful control over their personal data, starting with clear and transparent consent practices. However, with a confusing cookie banner or a missing opt-out functionality, it becomes easy to spot weak points in a company’s consent flow. 

Cookie banners that don’t allow genuine choice: One of the fastest ways to attract legal attention is through a cookie banner that only offers “Accept All” or buries the reject option. Regulators view this as a manipulative design, and plaintiff attorneys are quick to argue that it deprives users of meaningful choice. Even if unintentional, a poorly designed banner can be flagged as non-compliant. 

Lack of clear opt-out options: Modern privacy laws don’t just require opt-in consent; they demand an equally clear path to opt-out. If consumers can’t easily withdraw consent—or worse, if opt-out is hidden in settings pages or requires multiple clicks—companies run the risk of lawsuits. A compliant program ensures opt-out is as simple and visible as opt-in. 

Poor recordkeeping of user consent: It’s not enough to collect consent—you need to prove it. When challenged, regulators and courts expect companies to show time-stamped, verifiable records of when and how a user gave (or withdrew) consent. Without an auditable trail, organizations are left exposed, even if they have the right banner in place. 

Inconsistent experiences across regions: Global businesses often make the mistake of applying one set of consent rules universally or, conversely, customizing poorly across regions. A banner that works for EU GDPR may not meet CCPA or new U.S. state law requirements. Inconsistency not only confuses users but also signals to regulators and attorneys that compliance is fragmented, creating a clear opportunity for litigation. 

The Roadmap to Risk-Free Consent Management 

Often lacking the compliance resources like larger enterprises, small and mid-size businesses find themselves more vulnerable when consent practices are challenged. At the same time, the cost of defending a lawsuit can be significant, so many companies opt to resolve cases quickly rather than pursue lengthy litigation. However, there are concrete steps that can be taken to resolve the gaps in consent management and avoid costly legal exposure. 

• Consent & preference management system: Move beyond basic cookie banners by creating a consent experience that is clear, intuitive, and easy to manage. By streamlining how users interact with privacy choices, businesses can both enhance trust and reduce legal risk. A well-structured system ensures that individuals understand what they are consenting to, making opportunistic or “drive-by” lawsuits less likely to succeed. 
• Integrated Consent Templates: Adopt consent templates with precise language and customizable design options that align with your brand. Integrated templates provide consistency across all digital properties and clearly communicate what data is collected and why. This approach builds consumer trust while demonstrating to regulators or courts that consent collection is deliberate, transparent, and compliant. 
• Configurable Preference Management: Allow users to set their privacy preferences through a branded, responsive system. Giving individuals meaningful control, such as the ability to opt in or out of cookies, tracking, or marketing, reduces legal exposure and enhances the overall user experience. Intuitive preference management also shows a business is actively respecting user choice, which is a strong defense against consent-related claims. 
• Simple and Scalable Setup: Leverage plug-and-play configuration options that let your team adapt cookie templates and consent flows without heavy technical work. Simplicity and scalability ensure that compliance is consistent across all touchpoints, easy to maintain, and adaptable as laws and expectations evolve. This minimizes errors or inconsistencies that could otherwise be exploited in lawsuits. 
• Centralize Everything: Provide a single, comprehensive hub where all consent and preference settings can be viewed, adjusted, and managed. A well-designed privacy center not only streamlines day-to-day operations but also ensures the program is future-ready for new regulations. Centralization allows businesses to maintain clear audit trails and demonstrate robust compliance, reducing the risk of legal challenges. 

Consent in the Age of AI 

AI projects often repurpose existing data for new applications without clearly documented business purposes. This potentially exceeds the scope of original consent and leads to the usage of sensitive information in ways that consumers did not expect or foresee. Without careful governance, these gaps can expose organizations to regulatory scrutiny and legal action. 

• Document AI Use Cases and Business Purpose: Maintain a clear and detailed record of how personal data is used within each AI system. Document the intended business purpose, the types of data being processed, and the specific AI models or algorithms involved. This ensures that any data usage aligns with the consent originally provided by users and allows organizations to demonstrate compliance during audits or regulatory inquiries.  
• Set and Meet Consumer Expectations: Transparency is key when using AI to process personal data. Businesses should clearly communicate to users not only what data is collected, but also how AI may analyze, infer, or act on that data. Setting expectations helps prevent surprise uses of personal information and aligns AI-driven activities with what users reasonably expect.  
• Implement Layered Consent Mechanisms: Not all data is created equal and sensitive categories such as facial recognition, biometric data, or children’s information require explicit, granular consent. Layered consent mechanisms allow businesses to present options in a clear, tiered manner. Users can provide consent for general uses while separately agreeing to sensitive or higher-risk applications.  
• Centralize AI Consent Management: A single, comprehensive system for managing AI consent provides visibility across all applications and datasets. Privacy centers or consent platforms can track how data is collected, processed, and used across AI workflows, creating audit trails that demonstrate regulatory compliance.  

Closing the Gaps Before They Close In 

Drive-by consent lawsuits are on the rise, fueled by legal teams and regulators who scrutinize even the smallest gaps in consent collection. The rapid adoption of AI adds another layer of complexity, as data may be repurposed, analyzed, or inferred in ways users did not originally expect. Businesses that treat privacy compliance as just another checkbox risk financial and reputational damage, particularly when AI applications introduce new consent considerations. By adopting integrated consent templates, offering configurable preference management, and implementing AI-aware consent governance, organizations can ensure transparency, compliance, and trust with their customers. 

For a deeper dive into how your business can avoid drive-by lawsuits, along with supporting video and guidance material, please reach out here.