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The Phorm storm

by Corinne 17. April 2009 16:41

The UK Government has run into some trouble with the the European Union over data privacy laws.

The EU says the UK Government should have taken action against BT, who used behavioural tracking technology Phorm without the consent of the individuals being tracked.

The technology has since been blocked by Wikipedia and Amazon.

What is Phorm?

Phorm is an ISP-based behavioural targeting specialist. Their system gathers information about a user's habits as they surf the internet and uses it to serve highly targeted advertisements.

The technology has been subject to a high level of scrutiny from privacy rights groups.

'Secret' trials

The European Commission has taken a stand against the UK for allowing internet users to be tracked by Phorm's behavioural advertising technology without their knowledge, which it says violates European Union privacy rules.

They are taking legal action against the UK government for failing to act following secret trials run by Phorm and BT.

Why is Phorm being blocked?

Wikipedia also sees the Phorm technology as an infringement of privacy. A spokesperson for Wikipedia said: 'We consider the scanning and profiling of our visitors' behaviour by a third party to be an infringement on their privacy.'

Amazon, meanwhile, is not allowing Phorm's behaviour tracking service on any of its web domains, but is not currently saying why. Amazon spokesman Craig Berman said: 'All we're saying is we've chosen to opt out.'

Phorm says...

Phorm denies that its technology breaches privacy laws. A recent press release on their site reads: 'Phorm's technology is fully compliant with UK legislation and relevant EU directives.

'This has been confirmed by BERR and by the UK regulatory authorities and we note that there is no suggestion to the contrary in the Commission's statement.'

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Comments

29/04/2009 15:38:46 #

So it seems this story has got even better with Phorm getting personal against a handful of people whom they say are orchestrating a "smear campaign against Phorm". Check out the new site they have launched encouraging people to "get the facts":

http://www.stopphoulplay.com/

Andy United Kingdom

17/05/2009 21:26:50 #



nodpi.org/.../

but on this occassion I have no concerns given the response to a Freedom of Information Act request from Department of Business, Enterprise and Regulatory Reform (DBERR) - the very same department that Phorm claim have cleared their technology as fully compliant with UK law.
The response from DBERR states:
An examination of our paper and electronic records has not revealed any such material.
To add further clarification for your information, BERR has never provided such a statement to Phorm and has never confirmed to the company “that their technology is fully compliant”
You can find the FOI response here:

www.whatdotheyknow.com/.../Reply%20to%20I%20cooper%20foi%2009-0529.pdf.html

J D United Kingdom

13/07/2009 15:28:53 #

In follow up to this article in now looks like Phorm is getting reconsidered. BT and the carphone warehouse have now put the system on the shelf, at least for the meantime...

www.itpro.co.uk/.../your-views-phorm-gets-dumped

Online Marketing Agency United Kingdom