COOKIES

Cookies are small data files, that allow websites to recognise and track users. They attach themselves to a visitor's computer, a bit like a limpet to a boat. Advertisers love them, since they allow adverts to be more precisely targeted to potential customers. They are one of the reasons why Facebook and Google have such enormous market valuations.

However, the use of cookies involves difficult issues of privacy, not least because many internet users are unaware, or perhaps only vaguely aware, that they are being tracked. In order to tackle these issues, the E.U. has introduced regulations which affect all European websites. The crucial element is that a website must notify a visitor what cookies are being placed on their machine. Today is the last working day in the U.K. before the new regulation takes effect.

The consensus seems to be that most websites will not be compliant come Monday. One reason is that it is unclear what is required in order to comply. The BBC, a big and popular website which I often look at, has solved the problem (from yesterday) by asking viewers for their consent via a pop-up. However, the BBC's website is both free and not trying to sell anything; companies which use them as a sales tool may well balk at raising an issue of which many, if not most, of their potential customers are ignorant.

Non-compliance can in theory lead to fines of up to £500,000. The question is whether this rather draconian option will be invoked "pour encourager les autres", or whether the authorities will go easy during an initial transition period. Given that the Government's own websites are unlikely to meet the deadline, I suspect the latter.

Walter Blotscher