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IAB looks to save Internet cookies 
Thursday, November 01 2001
by Matthew Clark


A proposal being considered by the EU to ban "cookies" on the Net is meeting
hefty opposition, most notably from the Interactive Advertising Bureau in the
UK.





In recent weeks, the European Commission has been debating whether the use of
cookies on the Internet should be something users would have to opt into. The
cookie proposal, an amendment to a Parliamentary report on electronic data
collection and privacy, is set to go to vote on 13 November before the European
Parliament plenary assembly. If the proposal passes that assembly it will move on
to the EU Council of Ministers for a final vote. 





A cookie is a bit of text that a Web server can store on a user's computer.
Cookies are important because essentially they let Web sites "remember"
visitors: this is useful for shopping sites such as Expedia or Amazon.com which
want to recommend new books or flights to users based on past purchases, or offer
visitors other customised content. Cookies are also important for Internet
advertisers, since they can be used to more closely target ads to users.





The amendment was proposed by Dutch Parliament member W.G. van Velzen, and it
suggests that cookies are tools primarily used to track and store information
about users' surfing habits. In fact the amendment says the use of the
technology, "may seriously intrude on the privacy of these users. The use of
such devices should therefore be prohibited unless the explicit, well-informed
and freely given consent of the users concerned has been obtained." 





In response to this move by the European Government, the Interactive Advertising
Bureau (IAB) in the UK has launched its campaign called "Save Our Cookies."
The premise behind the initiative is that British advertising and e-commerce
companies would lose a collective STG187 million if MEPs were to pass the cookie
legislation. "There are several consequences including users being bombarded by
intrusive consent messages and advertising, or at worst forcing them to pay for
content," the organisation said in a statement. 





The IAB said it fears "any change in the law will lead to Internet users having
to re-register or re-enter preferences every time they re-visit a site, putting
them off e-commerce and from using the Web to search for information, products,
services or even entertainment." It continued, "This scenario would force many
commercial Web sites to restructure and rebuild their sites." 





The IAB cites Haymarket in saying that the UK's top 100 Web design companies
generated STG853 million in billings in 2000 with 20 percent of this turnover
dedicated to the creation of on-line advertising. It claims that if cookies are
restricted, it could lead to a decrease in business turnover of STG170 million
which would also lead to job cuts and company closures. 





"Cookies serve a number of functions to help consumers make better use of the
Internet. They allow consumers to receive useful, personalised content, and can
save on time and inconvenience," said Martina King, managing director at Yahoo
UK & Ireland, on the subject. "There is always the option, for the concerned
consumer, of setting the browser to be alert to, or stop the setting of, cookies.
The use of cookies is already covered sufficiently by present legislation. If
used responsibly the consumer has nothing to fear." 







Her comments were fortified by Alan McCulloch, chairman of the Institute of
Practitioners in Advertising's Digital Marketing Group, who said, "Whilst it is
important for consumers' privacy to be protected, this legislation is throwing
the baby out with the bath water. The commercial impact of this directive is a
'death blow' to Internet advertising in the UK."