Shared web hosting users could be affected by new OFT research

Shared web hosting users may be taking advantage of marketing on their website, especially in these difficult economic times. Now, it has emerged that the Office of Fair Trading (OFT) is to launch two market studies into advertising and pricing on the internet.

This work has been separated into different studies focused on two distinct issues. The first OFT study will look at behavioural advertising and customised pricing, in which prices are individually tailored with the use of data collected about a consumer’s internet use. It is believed that this research will be finished by spring next year.

The other study will explore advertising of costs. The research will look into different pricing practices which could mislead consumers and it will predominantly see how these are used online.

Such practices include ‘drip’ pricing, where cost increments ‘drip’ through during the buying process. ‘Baiting sales’, meanwhile, involve only some products being made available at a discount price, meaning that consumers could end up buying a full-priced product.

Talking after the OFT decision, a moneysupermarket.com spokesperson said that their company already works with the OFT on such issues. The representative claimed that the price comparison provider is in a good position as the price customers see on the website is the amount they pay.

"We are able to negotiate exclusive deals and little quirky things like that that make us stand out as well," they continued.

Talking about the online world in general, the spokesperson added: "The internet is continually growing still. It’s definitely not slowed, it’s not saturating, it’s a continually expanding market, there are new sites starting all the time, and even the existing ones are adding to what they do on a daily basis."

So, perhaps advanced web hosting users may want to look into how they price their own products, or even help the OFT in their work.

Written by Jermaine Jones.