OFT to investigate behavioural targeting
The future of behavioural targeting will come under the microscope after the Office of Fair Trading (OFT) revealed it would consider the subject in a wide-ranging new study.
Phorm’s targeted ad service Webwise, which tailors online ads to the viewing history of the browser, has encountered heavy opposition recently from civil liberty campaigners and politicians.
Now the OFT has outlined details of a new market research project, entitled The Advertising and Pricing Market Study, that will investigate whether the latest behavioural targeting techniques are detrimental to consumers.
Legality of online advertising practices considered
The UK trade authority will also look at online advertising and pricing strategies in relation to consumer law.
Heather Clayton, senior director of the OFT’s Consumer Market Group, has explained why she feels the investigation is needed.
“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,” she said.
Interested parties such as “consumer groups, businesses and other organisations” who wish to submit their views must contact the OFT by September 18th 2009.
After the study, the OFT has indicated it may take action such as encouraging a marketing industry-wide code of practice, referring the matter to the Competition Commission or making recommendations to regulatory bodies.
In April 2009, it was reported that the EC was instigating legal proceedings against the UK government over its liberal attitude towards Phorm.
EU telecoms commissioner Viviane Reding said at the time that the European community disagreed with how the UK was implementing EU rules about the confidentiality of communications.
