News that the Information Commissioner’s Office (ICO) have decided not to step in and outlaw the forthcoming Phorm trial by BT has been greeted with dismay by many consumer groups. Many now believe that this “wait and see” ruling has given the trials and the system itself the green light, even though there have been very strong arguments to say that it is illegal. So what is Phorm and how can it affect you?

Phorm is basically a system which allows browsers and websites to attach cookies to your system and track which websites you are visiting and which adverts are attracting you. This information is then fed into an advertising system which can basically forecast (very accurately) which sites you will visit and when you will be there. The issues around legality of the system are two fold :-

Personal Information

Many consumers groups are convinced that the system is one which finds and records data which can identify you, via your IP address for example, which is in direct breach of the Data Protection Act. However, it seems that the Phorm creators have stated categorically that no data of a personal nature is taken and recorded.

Interception Of Internet Traffic

This is perhaps the more straight forward case for the “prosecution” who have recited the laws which make the interception of internet traffic illegal, with culprits liable for a jail term of up to 2 years. While on the surface this does seem the more appropriate of the two claims currently being discussed, the ICO seem yet to be convinced.

Summary

While this saga looks set to rumble on for some time to come, there are many valid points in the arguments against the Phorm advertising system. Quite why the ICO are taking a waiting and see approach is a little disturbing but it will be interesting to see how they react in the future.