The Information Commissioner's Office (ICO) has said it will monitor an upcoming BT trial of targeted advertising system Phorm to gauge internet users' reaction to the service.
The controversial system sends advertising to users based on the web sites they visit.
The ICO said it is in ongoing discussions with Phorm, which is allowing its technology to be scrutinised by experts.
"We believe that it is only by allowing their technology to be subject to detailed scrutiny by independent technical experts that they will be able to prove their assertions regarding privacy," said an ICO spokesman.
Phorm claims that its system does not allow the retention of individual profiles of sites visited and adverts presented, and that it holds no personally identifiable information on web users.
BT will run a trial involving 10,000 broadband users later this month.
Last week it emerged that BT had trialled Phorm's technology in 2007 without informing customers.
BT claimed that the trial was legal because individual users' information remained anonymous – but privacy campaigners said it was a breach of the Regulation of Investigatory Powers Act (RIPA) 2000, which makes it an offence to intercept internet traffic without consent or a warrant.
Phorm is also negotiating deals with ISPs Virgin Media and Talk Talk.
Posing as consumers to give false reviews to be outlawed 20 Mar 2008
Phorm's method of collecting user data without consent might break the law, says think tank 18 Mar 2008
System will target advertising based on users' browsing habits 15 Feb 2008
Controversial system must be opt in and keep information anonymous, says ICO 10 Apr 2008
EU Commission asks UK Government whether Phorm system satisfies data protection laws 08 Aug 2008
Report claiming solar panels take over 100 years to recoup their value is just plain wrong, say manufacturers 05 Sep 2008
New hybrid hatchback designed to make dual-drive vehicles more affordable 05 Sep 2008
Republican attempts to highlight differences over energy policy as both candidates pledge to deliver US energy independence 05 Sep 2008
More news
Once your company has gathered up all the low-hanging fruit, what comes next? Sarah Fister Gale finds that the answer lies in everything from multi-million dollar energy efficiency programmes to printers powered by exercise bikes 03 Sep 2008
Slow journey times mean airships are highly unlikely to replace passenger jets, but, as Danny Bradbury discovers, a flotilla of new companies are convinced that low-fuel costs mean the old-fashioned aircraft could have huge appeal to freight operators 02 Sep 2008
Recent claims from the oil giant's chief executive suggesting tar sand extraction is required to slow the shift to coal may have caught the eye, but as BusinessGreen.com discovers they do not make much sense 28 Aug 2008 More in-depth
Post your comment
Send an email to the Business Green editor at feedback@businessgreen.com
