OFT to investigate online advertising

THE OFFICE OF FAIR TRADING (OFT) will be having a butchers at targeted online advertising and pricing practices.

The investigation is expected to be completed around the middle of next year and will take a close look at behavioural advertising and customised pricing, where prices are individually tailored using information collected about a consumer's Internet use.

The watchdog is also running a study of different price practices that effectively draw potential customers in with appealing prices but end up charging full price or even over the odds.

"These studies will ensure that we keep up to date with the latest developments and, in particular, on how new pricing and advertising practices are emerging and evolving online," said Heather Clayton, senior director at the OFT.

"It is very important that the OFT's approach to potentially misleading practices remains well-informed by a sound evidence base, so we effectively protect consumers while allowing firms to compete freely."

The researchers hope to use the findings to develop an industry code of practice, helping consumers by providing clear guidelines for dealing with companies suspected of breaching consumer law. µ