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BT and Phorm trialled advertising technology on 18,000 customers in 2006

A report has leaked out on a secret trial of the controversial advertising technology by Phorm.

The Register has reportedly seen documents confirming that the BT Retail group ran a “stealth pilot without customer consent between 23 September and 6 October 2006”.  It is said that the technology was approved “pending a further trial”.

The profiles of the customers were used to target advertising at broadband customers when they visited certain popular websites where Phorm had purchased commercial space, so adverts could be displayed in categories including finance, weight loss and jobs.

There has already been strong criticism of the potential introduction of the Phorm technology by leading ISPs in the UK, who have been in discussion with the company.  Recently The Foundation for Information Policy Research (FIPR) voiced their concerns to the Government’s Information Commissioner, stating the use of the advertising technology is illegal.

One concern was whether users will be opted-in to the advertising system automatically or be given the option to opt-out of the system.  BT however says that when it goes live, it will be legal under RIPA legislation.  It has also said it will change its terms and conditions if required to fully comply with legal requirements.

This is another good reason to always check the terms and conditions of an ISP’s contract before sign-up.  Hopefully when the system is live, the ISP’s terms and conditions will explcitly state the use of any tracking of user’s browsing habits and allow users to opt-out.