UK investigates online advertising market

Internet companies such as Google and Yahoo could face tougher scrutiny in the UK, after the Office of Fair Trading said that more needed to be done to ensure that targeted advertising on the Internet did not violate consumer rights.

The OFT said consumers needed to be informed more clearly when information was being gathered about their online browsing habits, and to be given more opportunity to opt out of the process. The OFT's findings on online behavioral advertising are the first sign that the watchdog could be considering bringing formal regulation to what has previously been a self-governing industry. The OFT warned that it was particularly likely to step in if companies not only used targeted advertising but also varied the price of goods they displayed to different customers according to previous online purchasing behavior or geographic location.