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The Benefits and Fears of Cookie Technology
01/ 13/ 2005

by Reid Goldsborough

You wouldn't think a computer tool with as innocuous-sounding name as a cookie would create the fear that it does. But these tiny Web browser helpers are an example of how the useful can get tossed in with the dangerous through the near-hysteria brought about by the real threats of computer viruses, hacking, spyware, spam and phishing.

Congress has considered anti-spyware in the past, and that likely will be considered in the future as well has the potential of banning cookies that you don't specifically agree to allow a Web site to place on your computer's hard disk. At first glance this seems like a good idea, but it would hurt the online advertising industry, and for consumers, it would likely mean that there would be fewer free Web sites.

So what exactly are cookies, and are they really worth getting worked up over?

A cookie is a small data file that can serve any of a number of purposes.

  • It can prevent you from having to login with your username and password each time you visit a site that requires a login.
  • It can keep track of your preferences with those sites that allow you to specify the type of content you want to see or how you want to see it.
  • It can be used by e-commerce security systems to identify your browser as protection against hackers.
  • It can be a way for Web sites and their advertisers to track where people click so they can better target their content and advertising.

It's this last purpose that most worries some people, who feel that it allows “Big Brother" to peer over their shoulder and watch them as they surf. However, storing user names and passwords is more of a threat, though both threats are overblown.

The big concern is third-party cookies, which are set not by the site you're at but typically by Web banner advertising companies such as DoubleClick.

Keep in mind, though, that cookies aren't spyware. Advertisers and the companies that service them use cookies to track aggregate behavior and to customize ads, preventing you, for instance, from seeing the same ad over and over at different sites. They don't link what you do on the Web to who you are.

One potential problem with cookies is the theft of the user name and password information in them by hackers who could then access your bank, credit card or other account. The solution here, as with other hacking threats, is to use a firewall program to protect this and other sensitive data on your computer.

The core issue here is who pays for Web content. Just as with other media, if you diminish ad revenue, the money has to come from somewhere else, and in this case, that means you.

If Congress passes anti-spyware legislation that bans cookies you don't specifically agree to accept, you would need to click to agree to accept cookies page after page as you surf any given Web site. This would render cookie technology unwieldy and would require an alternative technology, which could take a year or longer to develop, said Dave Morgan, CEO TACODA Systems, an online advertising services firm in New York City that helps large publishers target their online ads.

In the meantime, some sites would likely switch to subscriptions for the bulk of their content, rather than keep the bulk of their content free.

If you're still concerned with cookies, and many people are, you have options. Web browsers let you disable third-party cookies, disable all cookies or otherwise customize how you deal with cookies when you surf. Internet Explorer saves cookies in separate files in the Cookies folder. Netscape saves cookies in a single file called cookies.txt.

The Web site GetNetWise provides instructions on how to change your browser's settings to customize how it manages cookies, whether you use Internet Explorer 6 or 5, AOL 8, 7, 6 or 5, Netscape Navigator 7, 6 or 4.5, or Opera 6 or 5. Disabling all cookies, however, can limit your experience with some sites and can prevent you from accessing other sites.

DoubleClick gives you the option of opting out of its site-to-site cookie tracking, as does the Network Advertising Initiative for DoubleClick as well as similar online advertising services.

The personal computer revolution is all about personal choice, and this includes cookies.

Reid Goldsborough is a syndicated columnist and author of the book Straight Talk About the Information Superhighway. He can be reached at reidgold@netaxs.com or http://www.netaxs.com/~reidgold/column.

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