BT still set for Phorm trial whilst EU asks, “is it legal?”
BT is still due to press ahead with its ‘technical trial’ of Phorm, despite a letter from the European Commission to the government asking for reassurance, before the end of the month, that the system does not contravene EU data laws.
Despite the caution in Brussels, the broadband provider will “soon” be inviting 10,000 of its subscribers to sign up to the new system, under the name of BT Webwise, which will bundle anti-phishing software with Phorm’s web tracking system.
The controversial ad-targeting software anonymises users and then tracks, but does not store, web pages they visit to understand their interests so more relevant adverts can be put in front of them. It works through ISPs offering a route to track their subscribers in return for a cut of increased advertising revenue.
European Commissioner Viviane Reding has asked for clarification on how the system works and confirmation from the government that it does not break EU data laws before the end of the month.
Nevertheless a spokesman for BT has told SamKnows that this is a “matter for HM government” and that the ‘technical trial’ of Phorm will go ahead unaffected by concerns in Brussels.
“We are still planning on carrying out a technical trial of BT Webwise,” the spokesman said. “We’re planning on starting the trial soon.”
BT would not be drawn on when “soon” meant as it said this would make it a “hostage to fortune” and it also argued that a technical trial was not toning down on the previous talk of a “launch” or “roll out”.
A spokesman for Phorm followed BT’s line of the letter being a matter between the European Commission and the British government.
“However, we are in active dialogue with the European Commission and the UK Government,” the spokesman told SamKnows.
“We will continue to work with legislators and regulators to ensure that our legally compliant system is deployed in a way that exceeds current Internet advertising industry standards for privacy online. It is important to note that with our technology, participation will always be a transparent choice. Users will be able to switch it off or on at any time.”
This “transparent choice” is the result of the Information Commissioner ruling in the Spring that the only way Phorm would be legal in the UK is if it were only available on an opt-in basis. Hence, with consumers having to give their permission to sign up, BT and Phorm have devised BT Webwise as an extra service to reward those opting in.
This will build on BT’s automatic ‘junking’ of suspicious emails with a service that will flash up a warning on a screen if a subscriber types in an address or clicks on a link to a site that is suspected to be used by phishers.
The Foundation for Information Policy Research (FIPR), which has been a vocal opponent of Phorm, is adamant that despite the Information Commissioner’s ruling, web users will not react well to the launch of Webwise and that pressure from the EU could even cause the Information Commission to reconsider this Spring’s verdict and re-examine whether the system breaks EU and UK data laws, particularly the Data Protection Act 1998 and laws governing the interception of telecommunications.
Meanwhile, in America, NebuAd, which offers a similar technology to Phorm, has been laying off staff and telling its partners to delay any imminent launches of its ad-tracking software, which does not ask for users to opt-in. Congressmen on the House Subcommittee on Telecommunications and the Internet have been grilling the company over whether the system falls foul of several wire-tapping and telecommunication interception laws.
Tags: BT, BT Webwise, European Commission, FIPR, NebuAd, Phorm
