The ‘Advertising and Pricing Market Study' will look at several issues, including online pricing and the use of personal data in internet advertising. It will also examine how the habits and personal information of web users are used to target internet advertising.
The study was prompted by a lack of understanding about ads that could potentially be misleading. It could result in an industry code of practice which all marketers would have to adhere to, although it is not clear how this would be policed.
The OFT said the study will take into account the growth of the use of the internet for online shopping, information provision and advertising. It is calling for submissions from interested parties until 18 September.
The study could look at behavioural advertising where information on a consumer's online activity is used to target the internet advertising they see. It is also considering the practice of tailoring prices to individual consumers based of their personal data.
Digital agencies such as Phorm, which uses data to target online ads, could be affected by any codes passed as part of the investigation. Phorm has in the past been cleared of breaching privacy laws.
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