Phorm's BT Trial to Commence in U.K. Tomorrow

ISP’s level behavioral targeting company Phorm expects trials of its technology with U.K. ISP British Telecom will begin tomorrow. The tests will follow months of delays, and come as controversy swirls around the targeting approach in the U.K. and U.S. Further tests with other U.K. ISPs, including the Carphone Warehouse and Virgin Media are intended to follow BT’s trials.

A press release this morning stated simply that the trial would be conducted with “invited” BT customers, and would last a number of weeks. “Following successful completion of this trial and an appropriate period of analysis and planning, it is currently expected that Phorm’s platform will be rolled out across BT’s network,” it noted.

The firm conceded earlier this month that preparations for the tests had taken longer than anticipated, having originally been scheduled for early April. Speaking with ClickZ News at the time, BT’s chief press officer Adam Liversage said they were delayed while the ISP investigated a way for users to opt-out without leaving a cookie on their machine.

By mid-August, the trials were still pending, although Liversage said this was not a result of the opt-out issue.

Earlier this month, the U.K.’s Department for Business, Enterprise and Regulatory Reform (BERR), responded to concerns from the E.U. Information Commissioner, Viviane Reding, surrounding the legality of Phorm’s practices. The City of London Police were also reportedly inspecting the Phorm/BT relationship.

According to the BERR, the technology is capable of being introduced “legally, appropriately, and transparently in the U.K.,” as long as users are presented with an “unavoidable statement about the product and asked to exercise a choice about whether to be involved.”

In response, Phorm said, “The U.K. Government’s position on Phorm’s technology reflects our common commitment to transparency and superior standards of online privacy. We also believe that revolutionary technologies should be introduced in line with stringent criteria.”

British Telecom has admitted it conducted trials of Phorm’s technology in 2006 without consent from its customers. It was partly in response to this that commissioner Reding requested additional information on Phorm’s practices and technology. However, the BERR, and the Information Commissioner’s office, and the Police have decided not to take action against the ISP.

ISP-based behavioral ad targeting practices have also been scrutinized in the U.S. by government entities and privacy advocates. Just last week, representatives from ISPs testified at a Senate Committee hearing on “Broadband Providers and Consumer Privacy.” In the hopes of staving off legislation, they ensured lawmakers of their commitment to self-regulate consumer privacy requirements if they decide to enable behavioral ad targeting through firms such as NebuAd, another ISP-based ad targeting company.