A penny for your thoughts. How about a cookie for your clicks? The Federal Trade Commission and the U.S. Department of Commerce are very concerned about "online profiling". This is the practice of aggregating information about consumers' interests, gathered primarily by tracking their movements online, and using the resulting consumer profiles to create targeted advertising on Web sites. The FTC says online profiling typically employs "cookies," text files placed on users' computers to store information about their computers and their online activities. The FTC says consumers are largely unaware of the creation of online profiles regarding their online transactions and viewing habits. Here is how FTC Chairman Robert Pitofsky described the practice

"The use of conventional demographic information by advertisers to target consumers most likely to be interested in their products and services is a staple of the advertising industry, and does not raise any eyebrows. Online profiling, however, looks like it may be a very different beast. When I see, read, or hear an ad in the offline market place, "it" takes away no information from me. But, the online entity placing the ad may have the ability to watch me as I surf across various web sites, record what ads I already have seen, make sure I do not see them again, and show me ads it presumes will be of interest to me based upon the sites I have visited and whether I have clicked on other ads I have seen. And, all of this can take place without my knowledge, let alone consent. On a personal level, I find this more than a bit disturbing."

The FTC and Commerce Department held a workshop this week to discuss online profiling.

For more information visit www.ftc.gov