ICO Probes TalkTalk's Customer Web Monitoring

In the UK, The Information Commissioner's Office (ICO) is examining the process which mobile and broadband provider TalkTalk uses to monitor its customers' web browsing habits.

TalkTalk's process was first revealed in July, when a customer noticed that two 'guest' IP addresses had appeared in his web server logs. He raised the issue on the Internet Service Provider's discussion forum, which alerted several other customers to the fact that they were also being tracked by the same IPs.

TalkTalk has admitted to this behaviour, but claims it was a necessary part of the testing process for a new anti-malware system it is currently developing with Chinese firm Huawei.

As customers surf the web, the new system records all the URLs they visit, and checks them against a list of sites known to be infected with malware.

In a letter to TalkTalk, Information Commissioner Christopher Graham said that he was disappointed that the firm had not warned its 4.2 million customers about the online monitoring - 'especially in light of the public reaction to BT's trial of Phorm's Webwise service'.

Back in 2006, BT conducted a trial of Phorm's technology, which monitored customers' web browsing and search terms in order to serve up relevant ads. The company failed to inform its customers they were taking part in the trial, and as a result BT faced a potential legal investigation.

'You will be aware that compliance with one of the underlying principles of data protection legislation relies on providing individuals with information about how and why their information will be used. You will also be aware that these principles are not suspended simply because the information is being used for the purposes of a trial,' Graham added.

In response, TalkTalk states that it does not examine customers' web-browsing habits to serve up targeted ads, and says that the new security technology - which will be free and opt-in only - is being designed to warn customers if their computer or device is viewing a page containing viruses.