Watchdog has its eye on the web watchers

ONLINE advertisers that gather information about consumers without their knowledge are being monitored, the Office of Fair Trading yesterday warned.

The watchdog's report follows a rapid rise in "behavioural advertising", in which organisations collect information about online shoppers through "cookies", tiny files that are placed on a user's computer after their first visit to a website.

The information is used to target shoppers with personalised advertisements.

Officials found more could be done to provide consumers with information about how their personal information is collected and used.

The OFT said it would urge the online trade association Internet Advertising Bureau (IAB) to work with the industry to provide guidance to consumers on opting out of the practice.

Nick Stringer, IAB's director of regulator affairs, said: "We will work together to raise awareness of the choices that consumers have online and create consistency across the industry."