The Guardian does Phorm u-turn

The Guardian has pulled out of a deal to use a recently launched targeted advertising media tool, after widely reported concerns over its privacy implications.

The national daily newspaper first revealed it was among a number of advertising agencies and partner websites that include the Financial Times, MySpace and Universal McCann to use the new Phorm tool last month.

Phorm at the same time announced it had signed up internet service providers (ISPs) BT, Talk Talk and Virgin Media to track their customer's web browsing habits in exchange for an advertising revenue sharing deal.

Originally a spyware developer known as 121Media, the vendor has developed its Open internet Exchange (OIX) to profile a web user's interests so that they are more likely to click on better tailored advertising.

Now today the Guardian confirmed it had put the use of Phorm on the back burner, after a reader who complained about the tie-up received an email to that effect from Guardian advertising manager Simon Kilby.

He wrote: "It is true that we have had conversations with [Phorm]...but we have concluded at this time that we do not want to be part of the network."

"Our decision was in no small part down to the conversations we had internally about how this product sits with the values of our company," he added.

Phorm hit back with its own statement, which suggested the Guardian deal had simply been put on hold. It said: "Guardian Newspapers has reiterated to us its goal of participating in the OIX. They have told us that, from an immediate resource perspective and, prior to the full deployment of the OIX, they are simply focused on more urgent projects."

A Guardian press officer told IT PRO: "The Guardian Newspapers have not signed any agreements with Phorm, although we did have discussions with them."

But since confirmation that a number of ISPs and organisations were taking up the technology - which is still months away form going live - public concerns over the scheme's methods of tracking browsing habits have grown.

And high profile privacy bodies and internet commentators, including Sir Tim Berners-Lee and the Information Commissioner's Office (ICO), have questioned its methods of secret testing using BT data last summer and its automatic opt-in policy.

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