Phorm must be opt-in only !

" The Information Commissioner's Office (ICO) has issued a major revision to its statement on Phorm, insisting that the ad tracking system must be deployed on an opt-in basis to comply with the law. "

" Even if Phorm is not processing personal data, the ISP undertaking the profiling may be to the extent that it uses IP addresses in that profiling and is able to link its customers to an IP address although this may not be its intention.

To the extent that personal data is processed that processing must be fair and lawful in order to comply with the First Principle of the DPA.

Regulation 7 of PECR will require the ISP to get the consent of users to the use of their traffic data for any value added services. This strongly supports the view that Phorm products will have to operate on an opt in basis to use traffic data as part of the process of returning relevant targeted marketing to internet users. "