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Advertisers warned over 'cookies'

26 May 2010

The Office of Fair Trading has warned online advertisers who collect information about consumers without their knowledge using 'cookies' that they are being monitored.

Some online organisations gather information about shoppers using tiny files placed on a user's computer after they first visit a website, known as cookies. Shoppers can then be targeted with personalised adverts using the information.

More effort could be made to inform consumers about how their personal information is collected and used, a report by the Office of Fair Trading (OFT) found. The OFT said it would contact the online trade association Internet Advertising Bureau (IAB) to work with the industry to inform consumers on how to opt out of "cookies" and similar practices.

OFT spokeswoman Heather Clayton said: "The OFT is keen to engage with industry players and consumer groups while behavioural advertising is in its relative infancy, and before targeted pricing takes hold, so that the market develops in a way that protects consumers from bad practice."

IAB director of regulator affairs, Nick Stringer, said: "IAB research found that any consumer concerns decrease when presented with the relevant information about behavioural advertising as well as the tools to turn it off. The online advertising industry has already made a serious commitment and investment to safeguard consumer privacy whilst delivering a more relevant online experience."

Copyright © Press Association 2010

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