EC targets Phorm
p2pnet news | Advertising:- ‘Targeted’ advertiser Phorm is in the news again, this time with the European Commission coming out against it.
The EC has sent out a number of communications to members of the public today with regards to Phorm, says Alex Hanff, whose recently published a paper analysing legislation including, but not limited to: Regulation of Investigatory Powers Act 2000, Fraud Act 2006, Privacy and Electronic Communications (EC Directive) Regulations 2003 and Data Protection Act 1998 to investigate the requirements with regards to consent, the core issue of this debate.
“After careful analysis of relevant EU and UK laws, statutes and directives it can be interpreted that fundamental legal requirements were not met, making the covert trials illegal under criminal law and unlawful under common law,” he said.
Now, bottom line?
Phorm appears to be illegal under EU law.
“The Comission is aware of the activities of the company Phorm in the UK, concerning the analysis of internet traffic for advertising purposes, the agreement between Phorm and major internet service providers in the UK and the concerns that have been raised about the effects on privacy of these activities,” says an EC statement, going on >>>
Privacy and the protection of personal data are fundamental rights of the citizens of the EU. They are enshrined in articles 7 and 8 of the EU Charter of Fundamental Rights, and also protected by the European Convention on Human Rights and the related instruments of the Council fo Europe, to which all EU Member States are signatories.
The general principles of personal data are defined in Directive 95/46/EC and complemented and particularised for electronic communications by Directive 2002/58/EC on privacy and electronic communications (ePrivacy Directive). The ePrivacy Directive obliges Member States to ensure the confidentiality of communications and related traffic data through national legislation.
In particular, they shall prhobit listening, tapping, storage or other kinds of interception or surveillance of communication and the related traffic data by persons other than the users without their consent, which must be freely given, specific and informed indication of the user’s wishes. The data concerned in this particular matter i.e. the content of search queries, constitute communication within the meaning of this Directive and the URLs used in the packets constitute traffic data. This data should therefore be protected appropriately.
The responsibility for the enforcement of national legislation transposing EU Directives is with the competent national authorities. The ICO, the UK data protection authority, has issued several statements concerning Phorm. According to press information, the ICO is also investigating in at least one case, where a formal complaint has been made concerning alleged trials of Phorm technology by BT in 2007[3].
The Comission services will continue to follow this case and possible similar developments and take appropriate action, should the need arise.
The Comission confirms its commitment to the protection of privacy and security of electronic communications as one of its top priorities.
“It would seem they’re keeping a close eye on ICO to make sure they take appropriate action on the one case ICO has opened and if not, the Commission will act,” emails Hanff.
‘Transparently false claim’
The Register once described Phorm as a company with “roots in the murky world of spyware”.
In a system sharply criticised by Sir Tim Berners-Lee, the man who invented the World Wide Web, it tracks people online to create ‘personalised’ adverts.
Of it, “I want to know if I look up a whole lot of books about some form of cancer that that’s not going to get to my insurance company and I’m going to find my insurance premium is going to go up by 5% because they’ve figured I’m looking at those books,” said Berners-Lee.
His data and web history are, “mine,” he states. “If you want to use it for something, then you have to negotiate with me. I have to agree, I have to understand what I’m getting in return.”
“Phorm is trotting out the transparently false claim, also often used by Google, Facebook, MySpace and others, to whom the same argument applies, that offering ‘personalised’ advertisements by tracking users would improve their online experiences,” p2pnet posted, going on according to the BBC, BT PLC, TalkTalk and Virgin Media were among companies which had bought into Phorm’s Open Internet Exchange (OIX) ’service,’ which also touts OIX as offering “additional protection against malicious websites”.
Publishers and advertising agencies which had “partnered” with Phorm for the launch of OIX included FT.com, iVillage, Universal McCann, MGM OMD and Unanimis, the company boasted.
Said the BBC:
“The advertising system created by Phorm highlights a growing trend for online advertising tools – using personal data and web habits to target advertising.
“Social network Facebook was widely criticised when it attempted to introduce an ad system, called Beacon, which leveraged people’s habits on and off the site in order to provide personal ads. The company was forced to give customers a universal opt out after negative coverage in the media.”
But, “I myself feel that it is very important that my ISP supplies internet to my house like the water company supplies water to my house,” the story has Berners-Lee stating, adding:
“It supplies connectivity with no strings attached. My ISP doesn’t control which websites I go to, it doesn’t monitor which websites I go to.”
Stay tuned.
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.Stumble It!
Phorm – UK watchdog to monitor Phorm, April 7, 2008
analysing legislation – Phorm and DPI: Alex Hanff, May 20, 2008
The Register – ISP data deal with former ’spyware’ boss triggers privacy fears, February 25, 2008
sharply criticised – Tim Berners-Lee criticises Net ‘tracking’, March 17, 2008
BBC – Web creator rejects net tracking, March 17, 2008
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May 27th, 2008 at 9:14 am
Excellent piece Jon, thanks again.
May 27th, 2008 at 9:39 am
Digg @ http://digg.com/tech_news/EU_Commission_respond_to_the_publics_complaints_about_Phorm
May 27th, 2008 at 10:12 am
It seems when you get someone or some corporation that thinks all is fair, including taking advantage of privacy as well as user resources, they seem to think it is owed them as a right. When money gets involved, it gets even stranger in what they will think is alright to do.
Well here’s news for em. It’s my computer, my resources, my connection that is paid for by me. I see no where in all this where they are offering to aid or help support my costs and usage. What I see is they are offering a red herring in giving free services found elsewhere on the net as the supposed reason I should want their intrusions into my surfing habits and privacy. The supposed reason to be of offering me specifically targeted ads isn’t something I am interested in. I detest ads to begin with so they are offering me nothing I wish in exchange for this intrusion.
I suspect they know this and it is the reason they are trying to get in at ISP level. The major ISPs do understand money. Especially when it is a net gain to their bottom line. I also bet they understand public and policy lawmakers ire as well. Between the two choices, when it gets bad enough in the PR department, bet you they are quite willing to drop the financial gain if it is going to cost them shareholders as well as customers, which they will value more.
Phorm’s shady past to me is a large flag that the leopard hasn’t had a spot remover treatment. The mentality that started it all is still with them. It becomes very evident when you look at all the objections to their methods coming out to see the light of day. This is one of those pest industries that I can live without. While I may not be in the EU, there is a high likelihood that some time in my surfing I will cross their lines. I dislike this sort of abusive treatment from predators no matter where they reside.
Now if we could just get rid of some other predatory outfits, the world would be a better place.
May 27th, 2008 at 3:48 pm
good to see EU stepping in. remember to sine the online e-patition at the 10 downing street website.
May 28th, 2008 at 2:38 am
Yes sign the petition at 10 downing street.
http://petitions.pm.gov.uk/ispphorm/
It good to see that it 13,393 people so far have signed this peition and that it top 5 of all petitions that are active at moment at number 4.