The British government is in legal hot water with the European Union over data privacy rules related to an Internet advertising tracker that has been tested without informing users.
BT used the advertising tracker, called Phorm, in 2006 and 2007 without warning its subscribers, the EU claimed in a recent legal briefing. Critics accused the company of effectively snooping on subscribers' Internet activities without their knowledge. There were numerous reports to the British data protection authority and British police regarding the BT Phorm trials.
Phorm's platform monitors Internet activity and will alter what advertisements are shown depending on the user's Internet browsing history.
"Technologies like Internet behavioral advertising can be useful for businesses and consumers but they must be used in a way that complies with EU rules," according to EU Telecoms Commissioner Viviane Reding. "We have been following the Phorm case for some time and have concluded that there are problems in the way the UK has implemented parts of the EU rules on the confidentiality of communications."
Despite the increased interest in Phorm, the company said it doesn't plan on altering future plans, according to a recently released statement. The company said its technology is "fully complaint" with legislation in the UK, and it meets all relevant EU directives.
In the future, Phorm plans to work with BT, Virgin Media and Carphone Warehouse Group, which will give the service access up to 70 percent of Britain's Internet users. TalkTalk is seeking customer approval before it tries to roll out the service later down the road.
The EU also hopes to ramp up privacy details for young people on Facebook and MySpace, with the EU ready to draft up new legislation if necessary.
