New ad technology crumbles cookies

An advertising technology company is hoping to turn concerns about Internet privacy to its advantage, offering a way for companies to deliver online ads without using electronic markers known as cookies.

The service, unveiled by Interadnet on Monday, comes as new rules take effect governing data-gathering practices of government Web sites and as Congress considers limits on online consumer tracking. The company said it believes its cookie-less ad service could also be attractive to companies such as financial services firms, health care companies and pharmaceutical agencies that deal with sensitive customer data.

"The main privacy concern is that Big Brother is watching you," said Chris Valas, Interadnet's vice president of engineering. "And cookies are being perceived by the public and lawmakers as part of the problem...Once you lose cookies, you don't have the calling card that comes with every visit."

Ad technology companies typically place cookies on individuals' computers when an advertisement is delivered, giving them the ability to track consumer behavior online and gauge the effectiveness of an ad campaign or target marketing to consumer preferences. Web sites also use the markers to hold passwords and personal information for custom services such as Web-based email.

But consumer advocates have long criticised the tags for their technical vulnerabilities and potential privacy problems in the event of a computer breach. The mere fact that cookies can hold years of data about consumer travels on the Web is enough to raise the ire of privacy advocates. Such technology hopes to cut the fat from data collection on the Web--a hot point with legislators this year and a no-no for government Web sites. Last year, after several revelations that federal agencies were using cookies to collect data about consumers visiting their sites, Congress passed an act to prevent such tracking. Now, in the 107th Congress, there are several pieces of legislation for commercial businesses involving cookies indirectly that restrict technology promoting the collection of data for profiling, even anonymously.

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