The US Network Advertising Initiative (NAI) today announced an intention to develop on-line industry standards for the use of web bugs, also known as “web beacons” or “clear GIFs.” The NAI’s principles aim to uphold the use of web bugs which the NAI sees as “critical to the continued growth and success of the on-line economy,” but also recognise the need for greater transparency in their use.

Web bugs can be used by third party sites to implant cookies on to a user’s PC in order to track their movements across other affiliated sites without the user’s knowledge. They are used by companies to facilitate visitor counts, web usage patterns and assess the efficacy of ad campaigns.

Last week AOL announced an addition to its privacy policy to clear the way for the company to use such on-line tracking tools. The policy amendment reads:

“AOL may use …web beacons…to collect anonymous and aggregate advertising metrics, such as counting page views, promotion views or advertising responses.”

AOL however, responded to the concerns of privacy advocates by saying it would not use the technology to track user behaviour.

“We do not allow these technologies to track what members are doing on the web or the service, nor do we allow any organisation to build profiles about our members.”

The NAI aims to clarify the various circumstances in which web bugs should be used and what privacy policies and opt-out mechanisms should be employed and in which circumstances in order to address consumer privacy concerns.

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