OFT to Study Behavioural Ad Targeting

In the UK, consumer protection body The Office of Fair Trading (OFT) is to conduct a new study of online advertising, which will also examine the practice of behavioural targeting.

The study will look at current consumer law surrounding advertising and pricing, and will evaluate those practices that are most detrimental to consumers, taking into account the growth of the use of the Internet for online shopping, information provision and advertising.

It is also likely to examine the use of personal data, where information from a consumer's online activity is used to target the Internet ads he or she receives.

Heather Clayton, Senior Director of the OFT's Consumer Market Group comments: 'The way that businesses advertise and price goods and services constantly evolves, and we need to keep up to date on how consumers view these adverts, and the types of advertising and prices which may mislead.'

Clayton adds that before the study kicks off, the OFT wants to understand from consumer groups, businesses and other organisations which areas they think it should focus on.

Nick Stringer, Head of Regulatory Affairs at the Internet Advertising Bureau (IAB) said that the trade body is planning to respond to the OFT to highlight the work it is doing around online privacy and behavioural advertising.

Shares in controversial behavioural targeting firm Phorm fell by more than 20%, after the OFT announced an outline of the study.

Phorm's roll out of its Webwise browser tracking software, already secretly trialed by telecoms provider BT and others, has been dogged by the attentions of privacy campaigners. Recently, the European Commission has initiated legal action against the UK Government, over what it claims is its failure to force Phorm to comply with EU data protection and privacy rules.

The OFT's market study is expected to commence in the autumn. Web site: www.oft.gov.uk .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.