[dav]

The most important point for me that the ISPs, Phorm and their PR bots miss time and time again is that the illegality of the system is largely of no consequence. If I decide that no-one can have any access to my browsing data, then that is where the discussion ends. There is no implied consent in any of the agreements I have with my ISP.
The fact that they are relying on untested legal issues is a matter of rank incompetance in a business dealing with such basic issues as privacy. The law and policy makers will nigh-on always side with the masses, otherwise at the next election they'll find themselves on the pavement. The sooner Phorms investors realise this and jump ship, the better.