[Deko]

From advfn.

LONDON (Dow Jones)--The European Commission has warned the U.K. government it needs to take action to protect consumer privacy due to concerns about targeted advertising company Phorm Inc. (PHRM.LN), European Union communications commissioner Viviane Reding said Wednesday.

Reding said the commission was concerned Phorm was breaching consumer privacy directives and that the U.K. government needed to take action.

Phorm's technology tracks consumer activity on the Internet. The company has agreements with the U.K.'s three largest Internet service providers - BT Group PLC (BT), Carphone Warehouse's (CPW.LN) Talk Talk and Virgin Media.

"It is very clear in E.U. directives that unless someone specifically gives authorization (to track consumer activity on the Web) then you don't have the right to do that," Reding said. She said she was "a little bit worried about this development, and as a result her office sent pre-warning letter to U.K. authorities earlier this month.

If the U.K. government didn't resolve the issue, the commission could take it to the European Court of Justice.

A Phorm spokesman said he wasn't aware of this development. He said the company complies with all the relevant U.K. laws.

found a link
http://www.easybourse.com/bourse-act...argeted-488767

Update to story.

UPDATE: EU Wants UK Govt To Probe Targeted Advertising

DOW JONES NEWSWIRES

(Adds background, comment from BT.)

LONDON (Dow Jones)--The European Commission has warned the U.K. government it needs to take action to protect consumer privacy due to concerns about targeted advertising company Phorm Inc. (PHRM.LN), European Union communications commissioner Viviane Reding said Wednesday.

Reding said the commission was concerned Phorm was breaching consumer privacy directives and the U.K. government needed to take action.

Phorm's technology tracks consumer activity on the Internet. The company has agreements with the U.K.'s three largest Internet service providers - BT Group PLC (BT), Carphone Warehouse's (CPW.LN) Talk Talk and Virgin Media.

"It is very clear in E.U. directives that unless someone specifically gives authorization (to track consumer activity on the Web) then you don't have the right to do that," Reding said. She said she was "a little bit worried about this development," and as a result her office sent a pre-warning letter to U.K. authorities earlier this month.

If the U.K. government didn't resolve the issue, the commission could take it to the European Court of Justice.

A Phorm spokesman said he wasn't aware of this development. He said the company complies with all the relevant U.K. laws.

In April, Phorm hired Jeffrey Brooks Dobbs, previously vice president of privacy and government affairs at Google's (GOOG) DoubleClick, as its chief privacy officer.

A U.K. government spokesman wasn't immediately available for comment.

A BT spokesman said BT plans to launch a new technical trial using Phorm's technology this summer called BT Webwise. The service will give customers "a more secure online experience, fewer irrelevant advertisements and greater control over their privacy," he said.

He said customers would volunteer for this service. BT had sought legal advice during previous trials of the technology in 2006 and 2007 and "always acted in good faith."

-By Erica Herrero-Martinez, Dow Jones Newswires; +44 (0)20 7842 9353; erica.herrero-martinez@dowjones.com

Copyright (c) 2008 Dow Jones & Company, Inc.