COMPANIES OPERATING websites are anxiously awaiting the publication of new internet privacy legislation that is being introduced in Ireland on the back of a European Union directive.

The so-called “cookies directive” is designed to give consumers more knowledge and control over data that is being collected on them by website operators.

They will have to provide “opt-in” consent before websites can read or store data on their devices.

Cookies are small text files stored in a user’s browser which contain information about the user’s previous interactions with a website.

They are increasingly being used to display advertising that is highly targeted to individual users.

The Department of Communications has been consulting interested parties about the legislation since earlier this year.

The deadline for its introduction was yesterday but only Britain, Denmark, Spain, Estonia and Luxembourg enacted legislation before the deadline.

Although there are concerns the legislation will effectively make cookies illegal, which could have a huge potential impact on e-commerce and online advertising, assistant data protection commissioner Gary Davis said his office would issue guidance on complying with the rules on the same day the legislation is published.

It is expected the legislation could be published as soon as today.

Mark Rasdale, a partner in AL Goodbody’s IP and technology group, said he expected the new Irish law to take a “pragmatic approach”.

He said website owners would first have to decide if their activities are covered by the legislation and then figure out how they would get permission from users to place cookies on their machine.