The Register has revealed that BT has admitted that it used customer data to test Phorm’s ad targeting technology last summer.

Following the confession BT now faces legal action from some of their many customers who believed that their data was used in the tests.

In a statement on the subject a BT spokesperson said: “We conducted a very small scale technical test of a prototype advertising platform on one exchange in June 2007. The test was specifically conducted to evaluate the functional and technical performance of the platform.”

“Absolutely no personally identifiable information was processed, stored or disclosed during this trial. As with all service providers, it is important for BT to ensure that, before any potential new technologies are employed, they are robust and fit for purpose.”

In the news story, The Register revealed that they initially asked about BT’s involvement with Phorm in July 2007 (when it was known as 121media). At this time BT “denied any testing and said customers whose DNS requests were being redirected must have a malware problem”.

Following the announcement, BT will now use a similar scheme to Carphone Warehouse and provide customers with an “opt-out” service:

“We are already developing an opt-out solution that would remove the need for opt-out cookies altogether. We have carried out significant due diligence in this area, and are informed consent from our customers will satisfy the necessary legal requirements.”

Source: The Register

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