Ad targeting not bad Phorm, says BERR
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UK-- The Department for Business, Enterprise and Regulatory Reform (BERR) has given the controversial Phorm ad targeting software the green light to operate in the UK.
The Webwise system tracks the websites users visit and matches them to relevant advertisements and has drawn criticism from several corners, including Sir Tim Berners-Lee, the inventor of the internet, and the Foundation for Information Policy Research over privacy concerns.
Some of the country's leading ISPs, including BT, Talk Talk and Virgin Media, have agreed deals to run the software.
BERR said that the technology would be legal in the UK on the condition that customers of these ISPs were made fully aware that they were being profiled and were given the option to opt out at anytime.
User profiles must be given unique and randomly allocated IDs and Phorm has been told not to collect any information that would make it possible to link these user IDs and profiles to a particular person. The company is also not permitted to keep a record of actual sites visited.
BERR warned that further developments would be “scrutinised and monitored” by enforcement authorities.
However, a similar company in the US has not fared so well. NebuAd has shelved the ISP-based component of its behavioural advertising system amid privacy fears and a congressional investigation. All the ISPs that had considered or tested the system decided against using it.
Author: James Verrinder
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