The Home Office has been accused of colluding with
controversial online advertising companyPhorm.
E-mails were allegedly sent between the two in which the Home
Office discusses Phorm's "informal guidance" to the public on
whether the company's services are legal.
Phorm's technology tracks users' activity and targets ads at
them, based on which sites they've visited. Adverts relating to the
user's history are then posted on any sites that have signed up to
Phorm's service. So far
BT has signed up, carrying out a number of trials - some of
which were without users' consent.
A member of the public obtained the e-mails via a Freedom of
Information request and sent them to the
BBC.
They show the department asking if the firm would be "comforted"
by its position.
The Home Office has said that the suggestion of collusion
between it and Phorm was totally unfounded.
A spokeswoman said, "We have repeatedly said since these
documents were released a year ago that the Government has not
endorsed Phorm or its technology.
"We are committed to protecting the privacy of UK consumers and
will ensure any new technology of this sort is applied in an
appropriate and transparent manner, in full accordance with the law
and with proper regulation from the appropriate authority."
The BBC reported that the exchanges between the two date back to
August 2007. Phorm made a request for the Home Office's view on its
technology, and the department asked for more information on
it.
In later months the Home Office asks the firm what it thinks of
the advice it is drawing up in relation to behavioural targeted
advertising.
In an e-mail dated 22 January 2008, a Home Office official wrote
to Phorm saying: "I should be grateful if you would review the
attached document, and let me know what you think."
A 2007 e-mail from a Home Office official to Phorm said, "My
personal view accords with yours, that even if it is
"interception", which I am doubtful of, it is lawfully authorised
under section 3 by virtue of the user's consent obtained in signing
up to the ISPs terms and conditions."
In January 2008 the Home Office writes to Phorm to thank it for
comments and changes to its draft paper. The official says, "If we
agree this, and this becomes our position do you think your clients
and their prospective partners will be comforted."
The chief executive of Phorm has also responded to the
allegations in a letter to the Guardian. Kent Ertugrul denied there
was any collusion between Phorm and the Home Office. He said the
Home Office's advice was "an informed opinion on ISP-based targeted
advertising, but in the United Kingdom it is for the courts to
decide what is or is not legal, not the Home Office."
Phorm has defended its technology, saying it offers more privacy
and protection than other systems and could be a valuable new
source of funding for websites. It also says consumers would
receive more relevant adverts.