One of e-commerce's key technologies the cookie may be banned by the European Parliament, sparking concern from the Australian Internet industry.
Cookies are the small computer files used to store information about a user's Internet browsing patterns.
Some companies use cookies to gather data on the browsing habits of individual Web users, while other cookies perform menial tasks such as remembering what visitors saw last time they visited a site.
If cookies are banned, people who regularly shop and bank online may be put off by having to reregister or reenter preferences every time they revisit an online shop.
The European Parliament will vote on November 13 on whether to make cookies illegal.
It has been estimated the move could cost British online businesses alone more than $540 million.
The cookie ban is included in draft legislation following a major report into data protection.
News source: Australian IT
Cookies are the small computer files used to store information about a user's Internet browsing patterns.
Some companies use cookies to gather data on the browsing habits of individual Web users, while other cookies perform menial tasks such as remembering what visitors saw last time they visited a site.
If cookies are banned, people who regularly shop and bank online may be put off by having to reregister or reenter preferences every time they revisit an online shop.
The European Parliament will vote on November 13 on whether to make cookies illegal.
It has been estimated the move could cost British online businesses alone more than $540 million.
The cookie ban is included in draft legislation following a major report into data protection.
News source: Australian IT
According to the report, backed by the EU Citizens' Freedoms and Rights, Justice and Home Affairs Committee last month, the use of cookies by companies is an infringement on personal privacy and therefore a human rights violation under the European Convention for the Protection of Human Rights and Fundamental Freedoms.
"So-called cookies, spyware, web bugs, hidden identifiers and other similar devices that enter the users' terminal equipment without their explicit knowledge or explicit consent in order to gain access to information, to store hidden information or to trace the activities of the user may seriously intrude the privacy of these users," the report said.
"The use of such devices should therefore be prohibited unless the explicit, well-informed and freely given consent of the user concerned has been obtained."
The Internet Industry Association's Peter Coroneos said today cookies were fundamental to Australian e-commerce and it was ludicrous to suggest a ban.
"When you go to a website such as an online retailer and you are going from one page to the next, putting things in a shopping cart, a cookie is what helps the site remember what you did on one page before you go to the next one," Coroneos said.
"Under Australian privacy law, cookies are not considered to be an intrusion of people's personal information.
"The reason is primarily because they are not personally identifying information in the same way as the e-mail address perhaps could be, or certainly your phone or your name or credit card details."
Coroneos said he had discussed cookies with federal authorities.
"I think we managed to satisfy them that they were not of the same order of concern as other potential breaches of privacy could be," he said.
He said the latest browsers - the programs people use to view the Web - warned users about cookies and allowed them to reject cookies.
"These kinds of issues are probably better addressed through education of the end users rather than attempting to pass a law to ban them," Coroneos said.
"It could have a potential dire effect on e-commerce and banking."
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