BT was planning to go into partnership with web tracking technology company Phorm to deliver targeted ads at its customers.  The technology is suspect because Phorm would track all of your activity on the web to determine which ads to display to you on its partner sites.  Up to now ISPs have been relatively benign in analysing their customer’s surfing activity.

Privacy campaigners have vigorously questioned how user’s data and privacy would be protected.  The debate also spawned a petition on the Prime Minister’s No 10 Petitions website.

It is understood that Virgin Media and TalkTalk both still have the option to deploy the Phorm technology.

Will BT’s decision affect them?

Photo by Oranje

The BBC reports today that the UK Government Home Office colluded with internet tracking firm Phorm.

It appears that the Home Office were working with Phorm in drawing up guidance advice on targeted adverts.  Home Office officials also offered “personal” advice as to whether the technology acted as an interception of communications, and whether it was lawful or not.

Phorm proposes to monitor users internet usage in conjunction with partner ISPs (such as BT) to deliver targeted behavioural adverts to internet users.  BT has already trialled the Phorm technology without warning users that their personal and private web-surfing habits were being recorded and analysed by Phorm.  Privacy experts are worried about the Phorm technology because it performs what is known as deep packet inspection of internet traffic.

DPI will allow ISPs and companies such as Phorm to see exactly what a web surfer or e-mailer is doing on the internet.

There is a debate as to whether DPI counts as communications interception for which a legal warrent is required in the UK. In April 2009 the EU started legal action against Britain for allowing data interception without users consent.

Via BBC