[LINK] UK FIPR-Bulletin: Continuing concerns about Phorm

[Roger Clarke]

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FIPR Press Release

For Immediate Release: Sunday 6th April 2008

Continuing concerns about Phorm
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The Foundation for Information Policy Research (FIPR) has responded to
the Information Commissioner's Office (ICO) recent statement on the
controversial behavioural advertising system developed by Phorm Inc.

The ICO has acknowledged that there was "considerable public concern"
about the user profiling system, but their statement appeared to give
the go-ahead for upcoming trials of the system by BT, the country's
largest Internet Service Provider.

Nicholas Bohm, General Counsel for the Foundation for Information Policy
Research, said:

"We are one of those organisations expressing deep concern. So far the
Information Commissioner has neither acknowledged nor replied to our
letter of 17 March, which raised serious and important issues.

"We now know that BT have already conducted secret trials of this
technology, testing the effectiveness of snooping on their customers'
Internet activities. They claim to have received extensive legal and
other advice beforehand, but have failed to give the reasoning on which
this advice is based.

"As we pointed out in our letter, the illegality stems not from
breaching the Data Protection Act directly, but arises from the fact
that the system intercepts Internet traffic. Interception is a serious
offence, punishable by up to two years in prison. Almost incidentally,
because the system is unlawful to operate, it cannot comply with Data
Protection principles."

Richard Clayton, FIPR's Treasurer, and author of a recent technical
analysis of Phorm's technology, said:

"Phorm have accepted the accuracy of my detailed write-up of the way
their system works. Examining the detail makes it crystal clear that our
earlier letter came to the right conclusion. Website data is being
intercepted. The law of the land forbids this."

Nicholas Bohm added:

"BT now say they will no longer monitor their customers' web browsing
without their express permission, but they appear to ignore the fact
that they can only legalise their activity by getting express permission
not just from their customers, but also from the web hosts whose pages
they intercept, and from the third parties who communicate with their
customers through web-based email, forums or social-networking sites.

"We sincerely hope that the Information Commissioner will reconsider
what appears to be a green light for lawbreaking."

CONTACTS

Nicholas Bohm
General Counsel, FIPR
01279 870285
nbohm AT ernest.net

Richard Clayton
Treasurer, FIPR
01223 763570
07887 794090
treasurer AT fipr.org

Notes for Editors:

1.  The Foundation for Information Policy Research (http://www.fipr.org)
     is an independent body that studies the interaction between
     information technology and society. Its goal is to identify
     technical developments with significant social impact, commission
     and undertaken research into public policy alternatives, and promote
     public understanding and dialogue between technologists and policy-
     makers in the UK and Europe.

2.  FIPR wrote to the Information Commissioner on 17th March arguing
     that Phorm's system involved illegal interception contrary to the
     Regulation of Investigatory Powers Act 2000.

     press release of 17th March:
         http://www.fipr.org/press/080317phorm.html
     and full text of the letter:
         http://www.fipr.org/080317icoletter.html

3.  Richard Clayton's report:
         http://www.cl.cam.ac.uk/~rnc1/080404phorm.pdf

     The text was seen in draft by Phorm and the published version
     reflects their corrections.

4.  The ICO's press release, issued on Friday 4th April, is at:

     http://www.ico.gov.uk/upload/documents/pressreleases/2008/new_phorm_
     statement_040408.pdf

     or

     http://tinyurl.com/6mkblg

--ends

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-- 
Roger Clarke                  http://www.anu.edu.au/people/Roger.Clarke/

Xamax Consultancy Pty Ltd      78 Sidaway St, Chapman ACT 2611 AUSTRALIA
                    Tel: +61 2 6288 1472, and 6288 6916
mailto:Roger.Clarke at xamax.com.au                http://www.xamax.com.au/

Visiting Professor in Info Science & Eng  Australian National University
Visiting Professor in the eCommerce Program      University of Hong Kong
Visiting Professor in the Cyberspace Law & Policy Centre      Uni of NSW