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EU Passes law against online user information misuse

Nov 12 2009, 06:00 PM 

New law passed by EU makes it illegal to utilize user information sans consent.

In a move to tighten Internet privacy laws, the EU has passed a law against misuse of online user information. An amendment to the EU privacy directive makes it imperative to seek users’ informed consent before placing cookies on their machines. The aim is to ensure that the online ad companies are provided access to user information only if the user permits it, having enough information prior to giving such consent. The ePrivacy Directive targets online ad practices such as behavioral targeting and audience segmentation.

While the amendment will soon come into force following completion of certain formalities, EU member states are required to implement the same, without compromising on the spirit of the law. This development underlines transparency and choice as key to Internet ad practices thus protecting user privacy. Information can be accessed without consent only if it is necessary to provide a service, specifically requested by the user.

Several companies market their products to users through their personal Internet data, a practice that has given rise to reasonable privacy concerns. The law in question effectively deals with this issue providing some relief to users. Online advertising companies such as Google, Microsoft, AOL, Yahoo and so on will be highly impacted following the enactment of this law. Some industry players argue that it is impossible to interpret this law in a way that allows delivery of cookies without user consent. The law clearly calls upon the national governments to ‘ensure that the storing of information, or the gaining of access to information already stored, in the terminal equipment of a subscriber or user is only allowed on condition that the subscriber or user concerned has given his/her consent, having been provided with clear and comprehensive information.’ On several occasions the EU has objected to indiscriminate collection and usage of Internet user data for online advertising. The current amendment is proof that authorities will not tolerate disregard for privacy, be it for any purpose.

Given the law’s far reaching implications, EU countries are likely to soon implement the same to curb information abuse within their space. Moreover, this movement may also encourage other nations to take similar steps to tackle privacy issues.

Source: http://www.clickz.com/3635624

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