Phorm is a digital technology company that has been the source of an immense amount of controversy in the UK for its Webwise Internet browsing tracking system. The technology tracks users browsing habits to enable advertising to be better targeted at consumers. Question marks over its legality remain, and the EU has now asked the UK Government to decide on its fate.

Three ISPs in the UK, BT, Virgin Media, and Carphone Warehouse, have so far signed up to use the system, but BT is the only one to have so far run an experimental trialling of the system. It has reportedly run various trials, including one in 2006, and one in 2007.

The latest trials are rumoured to have involved 30,000 customers, many of whom were angered when details of the experiment leaked out earlier this year. The Register has kept a close eye on the trials, and its Phorm files are worth reading for a more detailed explanation of the situation so far.

While many dislike the fact that ISPs can keep an eye on what your Web browsing habits are in the first place, the big problem comes because BT failed to inform the customers used in the trial that they would be tracked. The UK Home Office has already indicated that Phorm’s Behavioural Targeting advertising system is only legal if users give explicit consent. Now, according to the BBC, EU commissioner Viviane Reding has asked the UK government to clarify whether the Phorm system is in breach of European data laws.

Mrs Reding sent a letter to the British Government in mid-July, and has asked for a response by the end of August. A petition on the Downing Street website calling for Phorm to be classified as illegal has so far been signed by over 16,000 people.

The Information Commissioner’s Office, the same department that gave Google Street View the green light in July, ruled back in April that the Phorm system would only be legal if targeted customers opted-in, something which hasn’t been upheld up until now.

BT is due to start a widespread trial very soon, but hopefully this new involvement from the EU will mean a delay. There may be a lot of money in it for the ISPs who sign deals with the company, but BT and other advocates for the system, are sure to lose customers trust and goodwill over what essentially amounts to spying.

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Entry was posted on Wednesday, August 6th, 2008 at 7:00 pm under Internet, Opinion, Technology.

Read more entries by Dave Parrack.
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