Dr Richard Clayton (Security Research, Computer Laboratory, University of Cambridge) went to see the Phorm system and has written a paper (PDF) about it.
On his blog, he comments:
Overall, I learnt nothing about the Phorm system that caused me to change my view that the system performs illegal interception as defined by s1 of the Regulation of Investigatory Powers Act 2000.
Phorm argue, with some justification, that their system does not permit them to identify individuals and that they meet and exceed all necessary Data Protection regulations -- producing a system that is superior to other advertising platforms that profile Internet users.
Mayhap, but this is to mix up data protection and privacy.
According to the BBC: "In response to Dr Clayton's report, a spokesperson for Phorm said: "Our technology complies with all the appropriate UK laws - and we've consulted a range of experts on this."
"The Regulation of Investigatory Powers Act (RIPA) was drafted in the earliest days of the internet. It is not designed to criminalise legitimate business activities - online targeted advertising is an accepted part of the internet landscape today."
The Guardian has been covering the Phorm story in depth, with Charles Arthur posting at least eight items on this here blog.
