90 per cent drop in visitors to ICO web site after changes in EU cookie laws

Raises concerns for online businesses such as retailers

A freedom of information request has revealed that the Information Commissioner's Office (ICO) has seen a 90 per cent drop in recorded traffic on its web site after an opt-in cookie policy was implemented.

The ICO is one of the first web sites in the UK to introduce such a policy after an EU directive was passed down to member states on 26 May, which stipulates that web sites need consent from visitors if cookies are stored on users' computers.

Cookies are largely used by companies to highlight to advertisers where their audience is based, and UK businesses with an online presence have until May 2012 to implement similar opt-in features.

The ICO has the following message displayed at the top of its web site, next to a tick box where visitors can consent to cookies being used:

"The ICO would like to use cookies to store information on your computer, to improve our website. One of the cookies we use is essential for parts of the site to operate and has already been set. You may delete and block all cookies from this site, but parts of the site will not work. To find out more about the cookies we use and how to delete them, see our privacy notice."

Businesses that do not comply with the change in legislation after the 12-month window could face a fine of up to £500,000, and Information Commissioner Christopher Graham described the EU-wide rule as "challenging".

Malcolm Duckett, CEO of digital marketing company Magiq, argued that the change in law could have a wider impact on EU businesses.

"The recent statistics from the ICO are staggering, and shows just what can happen if you get it wrong. The implications of not complying are huge, but it is worrying to see such a dramatic fall-off in visitors," said Duckett.

"The ICO has now experienced first-hand what many European businesses will no doubt be concerned about, and e-commerce sites in particular will be faced with a rough ride if this happens to them," he added.

"At a time when the high street is suffering, it has never been more important for e-commerce sites to be seen as trusted and reliable by customers, and this is a disquieting red flag to all web sites that will need to ensure compliance."