The institute's report 'Business thinks family' highlights the ways advertisers target children online. It says "wish lists" contravene advertising codes which say ads should not imply the products they are promoting are within the reach of every family budget.
The organisation is also calling for advertising on web sites used by children, including games, to be clearly marked as promotional material.
Dr Agnes Nairn, author of the report, said: "New ways of targeting children using websites are appearing all the time. But this brings difficulties for parents. The borderless nature of the internet means that regulation isn't enough to stop companies targeting children - businesses need to lead from the front."
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