The IPA, which is joined by the Interactive Advertising Bureau, is fighting an EU plan to curtail the use of cookies, the text files stored on users' PCs that hold personal details about consumers.
The IAB said that the EU move could cost UK companies £187m if the directive is ratified. A "Save our Cookies" campaign has been launched.
Their fear is over the proposed "opt-in" clause. This would require publishers to gain permission before they could store electronic data in order to identify the user on their next visit.
The IPA feels that the amendments will not be welcomed by users and will also damage the industry, as website operators are forced to make modifications. The IPA is calling for a debate on cookies, the function of which, they believe, is misunderstood.
Alan Murdoch, chairman of IPA's digital marketing group, said, "While it's important for consumers' privacy to be protected, this legislation is throwing the baby out with the bath water. The commercial impact of this directive is a potential death blow to internet advertising in the UK, and a multimillion-euro bill for companies using e-commerce in Europe."
An IPA survey of its digital members reveals that 75% of their total online advertising relies on cookies. The amendments will be discussed at the Telecommunications Council in December.
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