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Phorm Ticks the Boxes to Win UK Approval
The UK Department for Business, Enterprise & Regulatory Reform (BERR) has OK'd the use of Phorm's controversial user-behaviour ad-serving technology, stating that the system does not break EU data protection laws so long as users are given an easy option to opt-out.
Phorm uses a cookie system called Webwise to gather information about people's online activity from their Internet service providers, and then serve users ads based on the sites they've visited. The firm was recently in the public eye after telecoms giant BT admitted trialling the technology without informing users.
New regulations stipulated by BERR include that 'user profiling occurs with the knowledge and agreement of the customer', and that 'Phorm does not keep a record of actual sites visited'. Users will also be able to easily access information on how to unsubscribe at any point.
The office of the EU Information Commissioner, Viviane Reding - who raised the initial query over the legality of the service - will be issuing a response once a legal assessment is prepared.
BT is already planning a further trial of the technology. 'There is a good economic argument for it as it can help fund better content and services,' said Phorm in a statement.
'The UK Government's position on our technology reflects our common commitment to transparency and superior standards of online privacy. We also believe that revolutionary technologies should be introduced in line with stringent criteria,' the statement continued.
This latest news follows a recent announcement that online ad company NebuAd had been forced to back down from its behavioural targeting plan by Members of the House of Representatives Telecommunications and Internet Subcommittee in the US.
Web sites are at www.phorm.com and www.nebuad.com .
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