Cookies are small files that web pages leave on your hard drive. They are usually used to save user information. Remembering a login name is probably the most widely used application for Cookies.
The Cookie Law refers to the Cookie article from the Telecommunications Act. The Cookie legislation will let the user take control over the cookies on his or her computer. This would make it clearer to the user exactly what cookies do and what information the user gives away, in order to achieve better online privacy.