At least one direct marketing technology supplier, Acxiom, has been consulted as the ICO gathers feedback for its code, called Personal Information Online, which is set for publication in May 2010.
The ICO's investigation is happening just as the Office of Fair Trading announced it will launch investigations into behavioural targeting and online pricing practices.
Client body ISBA is advising the ICO in the hope that a code of practice will prevent government legislation on the issue.
In 2008 the ICO investigated complaints from the privacy lobby about behavioural targeting technology firm Phorm.
ISP-based behavioural targeting, such as that practised by Phorm, has attracted the attention of regulators in the UK, Europe and the US. Such technology is put into ISPs networks to intercept all users' browsing activity.
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