Insane New EU e-Privacy Directive. YOU are most probably breaking this crazy law and could be liable to a monetary penalty

New EU cookie law (e-Privacy Directive)
The law which applies to how you use cookies and similar technologies for storing information on a user’s equipment such as their computer or mobile device changed on 26 May 2011.

The Regulations require that users or subscribers consent. Directive 95/46/EC (the Data Protection Directive on which the UK Data Protection Act 1998 (the DPA) is based) defines ‘the data subject’s consent’ as: ‘any freely given specific and informed indication of his wishes by which the data subject signifies his agreement to personal data relating to him being processed’.

Consent must involve some form of communication where the individual knowingly indicates their acceptance. This may involve clicking an icon, sending an email or subscribing to a service. The crucial consideration is that the individual must fully understand that by the action in question they will be giving consent.

‘Prior’ consent
It has been suggested that the fact the Regulations do not specifically refer to ‘prior’ consent suggests that consent can be obtained after the activity consent is needed for has occurred (in this instance after the cookie has been set).

It is difficult to see that a good argument could be made that agreement to an action could be obtained after the activity the agreement is needed for has already occurred. This is not the generally accepted way in which consent works in other areas, and is not what users will expect. Setting cookies before users have had the opportunity to look at the information provided about cookies, and make a choice about those cookies, is likely to lead to compliance problems. The Information Commissioner does however recognise that currently many websites set cookies as soon as a user accesses the site. This makes obtaining consent before the cookie is set difficult. Wherever possible the setting of cookies should be delayed until users have had the opportunity to understand what cookies are being used and make their choice. Where this is not possible at present websites should be able to demonstrate that they are doing as much as possible to reduce the amount of time before the user receives information about cookies and is provided with options. A key point here is ensuring that the information you provide is not just clear and comprehensive but also readily available.

You should also consider whether users who might make a one-off visit to your site would have a persistent cookie set on their device. If this is the case, you could mitigate any risk that they would object to this by shortening the lifespan of these cookies or, where possible given the purpose for using them, making them session cookies.

http://www.ico.gov.uk/for_organisations/privacy_and_electronic_communications/the_guide/cookies.aspx