Phorm hit by “opt in” ruling

The Information Commissioner has ruled that internet users must “opt in” before they can be targeted with advertising. The move follows concerns about web profiling operator, Phorm.

THe ICO has told controversial ad-targeting system Phorm it will have to get agreement from users in order to comply with the Data Protection Act.

Phorm looks at the web-browsing patterns of users and in a bid to match advertising related to that history on websites. BT, Talk Talk and Virgin Media have already signed up to use the system.

Prior to the ICO ruling, Phorm was expecting to operate on the basis that all customers of an internet service provider were enrolled and users would actively have to opt-out.

The system has already been trialled on 18,000 users without their knowledge, which led to criticism earlier this month.

The ICO says it will now monitor the technology to ensure it does not infringe the EU’s data protection laws.

Critics have also said the system infringes data interception and privacy laws, however the ICO has refused to rule on this aspect, which will now be looked into by the Home Office.