Phorm approach ICO about privacy issues

By Isabelle Chaize

Phorm, the online advertising firm, have submitted documents to the Information Commisioner’s Office before the launch of their Open Internet Exchange (IEX) product. Phorm also made headlines last month due to concerns about the privacy of deals with technology and service providers.

The ICO are investigating Phorm’s proposals as to how they will protect privacy with their new product. The OIX watches web traffic in order to target advertising to specific customers, which has caused concern about privacy among some people. Despite the worries, the product has been arousing interest in BT, TalkTalk and Virgin Media.

The ICO watchdog said that they had ’spoken with the advertising technology company, Phorm, regarding its agreement with some UK internet service providers. Phorm has informed us about the product and how it works to provide targeted online advertising content…we are currently reviewing the information.’ Their spokesman added that they had also been talking with the internet service providers who Phorm work with.

The ICO said that the review was still in the early stages, and that there was as yet no way of knowing what the outcome might be or even when to expect a decision.

Phorm claim that their product does not endanger privacy, having in-built safeguards such as the fact that the product does not store personal information, IP addresses of browsing histories. The program can also be switched off by customers if they so desire.

Radha Burgess, Phorm’s marketing and communications director, said that ‘we felt it was really important to let the ICO know what we were doing. They seemed very interested in our story and they seemed to be very warm to the privacy safe guards built in. She added that ‘it’s all part of an ongoing dialogue, and we’ll answer any questions they have. It all seems very positive.’