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NebuAd Shuts Up Shop
In the US, behavioral targeting firm NebuAd has ceased trading, following legal problems. The firm was sued last autumn and questions asked in Congress concerning its purchase of information about web users, without their permission.
The suit was filed last November against NebuAd and six Internet service providers (ISPs) who tested its platform, by a group of web users who claimed the firm's technology violated web users' privacy. They specifically complained that the company had bought information about subscribers' online activity from the ISPs, and used the data to send the users targeted advertising.
At the time, NebuAd said that all data collected was anonymous and that it did not retain copies of their IP addresses, or collect sensitive data. However, after being questioned in US Congress, CEO and founder Bob Dykes resigned.
NebuAd's lawyers said the firm is currently operating on a skeleton staff while it arranges final payments to creditors. It once employed more than 60 people at its Redwood, California headquarters.
The company has been winding down since last summer, laid off most of its employees in July and August, and closed its Redwood offices in September when it moved its remaining documents and data to Foster City.
Meanwhile in the UK, privacy advocates continue to object to the technology used by NebuAd's rival Phorm, and the EU has launched legal proceedings against the UK government regarding its trials of this technology, carried out by BT in 2007.
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