From 25 May organisations running websites will need the user's permission before a cookie can be used, which will align UK law with EU regulations covering electronic communications.
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Communications Minister Ed Vaizey said: "The changes to the EU Electronic Communications Framework bring our regulatory framework up to date. They will help ensure there is a level playing field across Europe."
To address these concerns the government plans to work with browser manufacturers to see if browser settings can be enhanced to meet the requirements of the revised directive.
Enhanced settings would present users with easily understandable choices on importing cookies on to their machine.
The government is also supporting cross-industry work on third-party cookies in behavioural advertising. Adverts would have an easily recognisable icon so users could access more information, as well as an option to refuse those and other cookies.