The Crown Prosecution Service (CPS) is reportedly considering whether to prosecute BT over the Phorm ad targeting tests it carried out among customers in 2006.
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The Phorm system is being considered by BT, Virgin Media and The Carphone Warehouse. The system tracks websites used by broadband users and picks up keywords loaded by their browser.
This allows targeted ads to be sent to broadband customers. Privacy campaigners have been outraged by the system, and there are allegations that BT breached data privacy laws in its tests by not getting permission from broadband customers first.
BT denies it has broken any laws over its use of Phorm. City of London Police previously decided not to investigate the BT tests after complaints from privacy advocates.