CPS Drops Data Privacy Case against BT/Phorm

In the UK, the Crown Prosecution Service (CPS) has dropped its investigation into 'phone giant BT's trials of Phorm software, which it used in 2007 to serve personalised ads to tens of thousands of customers without their consent.

The case came to light when BT admitted using business customers' data without permission, in a trial run of ad-serving firm Phorm's 'Webwise' software, which uses cookies to track people online and then send them tailored ads.

After an investigation the following year, the UK Government concluded that Phorm's system did not break EU data protection laws so long as users were given an easy option to opt out.

The CPS, which re-opened the case last May, now says there is insufficient evidence to proceed with a prosecution. In a statement, it explained that this decision had been influenced by the fact that the trials had been short and were unlikely to be repeated, and that the data gathered was anonymised and later destroyed.

Privacy campaigner and behavioural advertising and profiling expert Alexander Hanff, who lobbied the CPS to take on the prosecution after City of London Police declined to investigate, commented: 'I'm very disappointed and I'm going to look at the possibility of a judicial review. I don't see their excuse for not prosecuting is acceptable.'

BT in a statement said only that it is 'pleased' the CPS had decided not to prosecute.

Web site: www.phorm.com .