Changes made due to Bad Phorm

Many would find it hard to turn down a cookie, but when it comes to the non-chocolate chip kind you would find few who could turn them off. Computer cookies, not little creatures that munch at your hard drive but those small files that websites send to web browsers to tag visitors, are currently a heated subject.

2009- in the EU's Privacy and Electronic Communications Directive things were dramatically changing. Cookies were being baked until the point of burning in the heat of the decisions. Changes demanded that storing and accessing information on users' computers was only lawful "on condition that the subscriber or user concerned has given his or her consent, having been provided with clear and comprehensive information...about the purposes of the processing" the Directive said.

In summary, cookies were only allowed to be implemented on browsers with knowledgeable consent from the web user.

Exceptions exist, "strictly necessary" non-consented cookies are still allowed for services "explicitly requested" by the user- nothing 'explicitly' saucy though, the sanctioned websites were only those taking a user from a product page to a checkout page. From May 2011 all others will need consent.

In all honesty not many "average data subjects" (people) are computer literate enough to be able to turn off cookies- or even aware that their online behaviour is being tracked.

It was 2006 and 2007 when BT ran two secret trials of Phorm. The 'service' that Phorm provided for BT, Talk Talk and Virgin Media was brought to the public's attention in 2008. Considered little more that spyware, the alledged 'big brother' nature of the internet tracking and targeted ads- possible due to a collection of data gathered from private web browsing- was unwelcomed by the media and potentially broke data protection laws. A year and a half later and a lot of pressure from privacy groups like BadPhorm, an obviously named anti-Phorm group, and BT and Talk Talk have formally withdrawn any plans to implement Phorm on their networks. However legal issues still exist.

Phorm on the other hand has less power. Being basically pushed out of the UK market means it has established and focused on other markets, such as Brazil and South Korea. By moving its operational activities to Brazil, Phorm and 'Oi', the ISP that bought 'Navegador'- the re-named 'Webwise Discover', has come under scrutiny by the Brazilian Ministry of Justice over privacy concerns around its technology. Although losses have reduced since 2008, they are still amounting, and with yet more public debates joining in over the lack of privacy in private web browsing Phorm is relying heavily on the generosity of its investors to still continue business.