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Phorm tracks internet usage
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EU issues Phorm warning to UK Government
Garnet Roach garnet@consumerchoices.co.uk
The European Commission has warned that if the UK Government doesn’t deal with the issue of the controversial Phorm advertising system, it will be forced to take the matter to the European Court of Justice (17-07-08).
Phorm, a company which has its roots in Spyware, works with ISPs - including BT (www.BT.com) - to anonymously monitor sites visited by customers to develop targeted advertising campaigns, of which the broadband provider then gets a cut. It claims the system is legal, but the EU clearly has concerns.
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"Unless someone specifically gives authorisation [to track consumer activity on the Web] then you don’t have the right to do that"
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“It is very clear in EU directives that unless someone specifically gives authorisation [to track consumer activity on the Web] then you don’t have the right to do that,” Viviane Reding, European Union communications commissioner, told the Dow Jones newswire.
She added that she was “a little bit worried about this development”, and had sent a pre-warning letter to the UK authorities earlier this month. The UK Government has not yet commented.
There were anti-Phorm protests outside BT’s annual general meeting in London yesterday, with campaigners concerned about the privacy issues surrounding the software. Phorm currently uses an opt-out system rather than an opt-in, which has naturally caused more concern.
Michael Phillips, BroadbandChoices.co.uk product director, said: “Many people are uncomfortable with the idea of having their internet use tracked. Also, BT and Phorm didn’t do themselves any favours by secretly trialling Phorm on tens of thousands of customers.
“There is no doubt that this should be an opt-in rather than opt-out service in all cases,” he concluded.
TalkTalk (www.TalkTalk.co.uk) is set to offer Phorm advertisements as an opt-in service, though no launch date has yet been set, and Virgin Media (www.VirginMedia.com) is also considering adopting the controversial system, though it is not yet clear whether it would be on an opt-in or opt-out basis.
Related article - Internet security guide
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