ISP ad deal triggers ‘spyware’ fears

More than ten million customers of UK’s three largest ISPs; BT, Virgin Media and Carphone Warehouse are feared to have their browsing habits sold off to a company who has previous been accused of using spyware software. However, the firm behind the new advertising system rejects any concerns.

Using the new Phorm service BT, Virgin Media and Carphone Warehouse will be able to share information on customers’ browsing trends in order to implement target specific advertising. As part of the deal the three major ISPs will be able to receive a share of the revenue received through the advertising. Estimates show that BT could receive £85m in 2010 as part of the Phorm deal.

According to reports on The Register, Phorm is run by Kent Ertegrul, an entrepreneur who is most well known for founding PeopleOnPage, an ad network that was blacklisted a few years ago for using spyware software. A spokesman has denied links between PeopleOnPage and Phorm by stating: “The previous company was involved in the adware space, but that was a long time ago,” he said. “We’re actually setting a whole new gold standard in online privacy.”

A BT spokesman has confirmed the company’s trust in Phorm: “BT has carried out extensive commercial, legal and technical due diligence on Phorm and Webwise, and is confident that customer confidentiality and security is wholly protect. Webwise doesn’t collect any personal information, or keep IP addresses, website addresses, keywords or search terms – it simply analyses web pages visited by BT customers and matches them against pre-defined categories of interest to advertisers.”

Virgin Media has also expressed similar views.

Introduction dates for the Phorm service hasn’t been announced by any of the ISPs involved.

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10 Responses to “ISP ad deal triggers ‘spyware’ fears”


  1. 1 Dave Farrance

    “…PeopleOnPage, an ad network that was blacklisted a few years ago for using spyware software such as Symantec and F-Secure.”

    Whoa! Symantec and F-Secure are the security companies that blacklisted PeopleOnPage.

    Somehow “by” got replaced by “such as”.

    - Thanks for the tip off, Dave - Newsgenie

  2. 2 THINK ABOUT IT....

    AS I UNDERSTAND IT THE SOFTWARE CAN BE TURNED OFF BY THE USER….SO IF YOU DO NOT WANT AD’S TO BE SENT TO YOU…SIMPLY OPT OUT…..

  3. 3 Genny

    Actually what is stated that it is an Opt-out cookie so the moment one were to delete their cookies they would be automatically opted in again.

    Further, Phorm does not “send ads” to the consumer they say that they track the web-browsing behavior; therefore, they must work with publishers to display those ads. The user does not realize any difference browsing the internet than before other than more relevant ads based on past browsing behavior.

  4. 4 John

    Yes, you can opt out, however the moment you clear your cookies, you will be opted in again.
    BT’s information implies that by opting out, you will not receive targeted adverts, it makes no mention that information will no longer be sent to Phorm.
    BT are being very cagey about releasing information, that paired with the fact their new business partner has roots in the spyware industry is not a way to reassure your customers.

  5. 5 THINK ABOUT IT....

    Its seems to me some people cant accept change…..if this company is improving your internet experience and also “ actually setting a whole new gold standard in online privacy.” I personally think this is a great idea and look forward to its introduction I applaud the UK ISP’s for being so progressive in the approach…..These sites rubbishing Mr Ertegrul and PHORM seem to have THEIR OWN AGENDA…..If you really want to worry about some thing look at Nebuad….does the same as Phorm just years behind…….

  6. 6 Dennis

    Firstly you can only opt out if you know about it, and i have not seen any public announcement anywhere yet. Secondly that repugnant Kent Ertegrul’s PeopleOnPage was also involved in supplying free software that contained a trojan rootkit bombload that promptly sent a list of the contents of your computer back home when it exploded. The moment my ISP passes information to that vulgar little chap i will start legal action to insure i’m not being spied on by the vermin that once infected my computer.

  7. 7 Steve C

    “if this company is improving your internet experience..”
    ?

    It is not an improvement to service.

    It works as an opt-out method driven, as others have correctly stated, by a cookie. If that cookie isn’t there, you’re opted in.

    The data sent will *NOT* be anonymous.

    If you can demonstrate how that will help, please let us know.
    Also, if you tell me how is doesn’t breach the Data Protection Act I’ll also be interested.

    If you want a real world equivalent, think of this:

    A postman delivers your letters to your door. However, before doing so, he open the letters, copies them, reseals them as if nothing has been opened and finally sends the copies to a foreign company who are asked to remove anything that’s personal before looking at them.

    Meanwhile, each shop you look in the window of, each letter you send, each phone call you make is noted and passed to this company, again with the proviso they don’t store your name.

    *NOTHING* online is anonymous, but having your ISP mirror your activity to a 3rd party is just rude!

  8. 8 John Bayly

    To the anyonymous user “THINK ABOUT IT”, care to share your name and what company you’re working for? It sounds like you may have an agenda of your own.
    Phorm has dubious roots, the audit by Ernst & Young was done agains US accounting procedures, not those in the UK, and comes with the caveat “Because of the inherent limitations in controls, error or fraud may occur and not be detected”. Please explain where you get your “Gold standard” info.
    I can accept change, just not the changes that sell my privacy for a quick buck.
    This information the BT will be giving Phorm is more than the police can get from an ISP without a warrent.

    Oh yes, and thank for not shouting :D

  9. 9 David

    Well, all you need to do is in Firefox add Webeise,net to the blocked ccokie list, that will stop the tracking cookie, I would imagine you can do it with Internet Exploder (which I don’t use)…. gee why not install a key logger l.o.l.

  10. 10 Martin Young

    Firstly to THINK ABOUT IT…. It is very obvious you are posting here from the offices of Phorm or one of its PR companies. What you have to say has been said by you and your cohorts in many forums and it is simply untrue. Privacy cannot be enhanced by diverting all traffic through third party machines that snoop on the habits of users.
    Secondly to David, who thinks blocking a cookie will save him, think again. Blocking the cookie will not prevent your internet traffic being diverted. It will stop the ads, but in my opinion, that is a minor issue. Yours, and my, data streams will still go through the Phorm machines. As such you will be subject to the same inspection as if you had that cookie. Just no ads will come from the waiting ad servers.
    As far as the claim this wire tapping will enhance the internet experience of customers. Perhaps these ISPs would be better off actually delivering the service their customers pay for. Rather than using their personal information to rake in extra millions that will boost their share price.

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