Cookies remain but spam struck off the menu

EC telecoms ministers have insisted that cookies will survive despite approving a ban on all forms of electronic spam.

The EC has also decided to give more snooping powers to law enforcement agencies as part of the wide-ranging Communications Data Protection Directive.

The Directive is due in January 2002 and is likely to infuriate the already-beleaguered internet industry.

Under the legislation, cookies can only be used if surfers are first warned of their presence. The issue has provoked intense concern from internet advertising bodies and website owners in recent months.

Although the ban on spam is likely to allay consumer alarm at the rapid increase in unsolicited email and wireless text messages it will cause more distress to an online advertising industry already beset by falling revenues.

A clause in the directive allows a company to send spam to any customer that has made a purchase from it as long as it offers an opt-out link for free removal from its mailing lists.

However, the EC ruling on data retention and snooping is likely to cause more headaches for internet companies.

The legislation proposes that businesses hold on to electronic customer data and phone logs for up to seven years before deletion.

European Council ministers' decision to allow individual countries to make up their own minds about keeping data records is in conflict with the European Parliament which voted to tighten controls over access to private records.

Under existing law, all information must be deleted within 30 days.

The final nod on the Directive will come from the European Parliament before the end of the year.