
How many different PR outfits should you hire in crisis? Well the answer seems to be three if you are Phorm, which according to PR Week has taken on Freuds, Citigate Dewe Rogerson and crisis guru John Stonborough to rescue its business.
For those of you who have missed the wave of negative coverage, Phorm is essentially an ad-serving company which has signed deals with leading ISPs including BT, Virgin and Talk Talk which allows it to track the browsing behaviour of customers and display better targeted ads – with the ISPs collecting a share of the ad revenues.
The current national media storm was triggered by claims from Cambridge academics at the Foundation for Information Policy Research (FIPR), that Phorm’s activities are ‘illegal’, as gathering information about site visits without a user’s consent could be considered to be in contravention of the Regulation of Investigatory Powers Act, which prevents unlawful interception of communication. The FIPR has called on the Information Commissioner to investigate and his report on the service is due in the next few weeks. Phorm’s immediate fate rests on his verdict.
Hindsight in PR as in everything else is a wonderful thing. Given the scale of the controversy surrounding Facebook’s introduction of its Beacon platform last year, it was however entirely predictable that similar concerns about Phorm would be vigorously voiced by consumers and privacy groups in the UK. Good crisis comms is as much about prevention as effective cure – having the Information Commissioner on side before going public seems like such a no brainer. It would have given the service legal credibility and helped reassure the ISPs, publishers and advertisers on which the service depends.
Ultimately though Phorm’s fate rests with the ordinary consumer, the internet users clicking those banner ads. Taking the national ID card debate as an example, I doubt there is any amount of official reassurance from government and regulators which could overturn the deep scepticism of the British public towards having their online behaviour tracked in such an all pervasive way. The near 8,000 strong Downing St petition calling on Phorm to be shut down and the growing volume of customer complaints directed to the ISPs supporting the service could just be the start.
Let’s see what Freuds, Citigate and Stonborough can do…
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Phorm’s PR planning was foolish. You don’t set up a blog once the crisis has happened but they should have done it at the very latest the same time they were commissioning the Ernst and Young report on privacy.
Your privacy is an illusion anyway if you look at the amount of information that supermarket loyalty cards, credit agencies like Experian and you bank has.
It is just that they haven’t bothered to use that data, pretty much your whole adult life is available there, what isn’t there can be inferred from the available data.
Then there is the battery of CCTV camera that we walk past everyday – the UK has more cameras per head of population than anywhere else in the world including China, Japan or the US .
The governments move towards data-mining and widespread departmental data access is a much greater privacy risk.
Comment by Ged Carroll March 20, 2008 @ 6:04 pmHi — Phorm Comms Team here. Just wanted to bring some clarity to your spirited piece. We actually have three agencies on board: Freud, Citigate Dewe Rogerson and Burson-Marsteller (why where they ignored?! Could the PR Week article that inspired your blog http://www.prweek.com/uk/news/article/794618/Web-tool-firm-PR-fightback/have got its facts wonky?) also we work with John Stonborough, as you say. Marvellous chap.
But on a serious note, the PR week piece implies we just hired these firms. The fact is, they were on board late last year. We also have a small in-house team and knew we would need extra resource — again, foresight not hindsight..
With best wishes,
Phorm Comms Team
Comment by techteam March 20, 2008 @ 6:21 pmCome in an see us if you like — drop us a line to phormcommsteam@phorm.com
Hi Phorm Comms Team,
Comment by Daljit B March 20, 2008 @ 6:38 pmThanks for the clarification and keep us updated with developments.
Good luck!
Daljit
Hi Ged,
You are of course right, I suspect you may have been watching the BBC’s The Last Enemy as well, where one of the characters echoes your point above.
It’s also a case of agreeing with the comments of the Information Commissioner last year about ’sleep walking into a surveillance society.’ There is a lot of data out there already and the argument Phorm needs to make is that its service is not a step too far down this road.
thanks,
Comment by Daljit B March 20, 2008 @ 6:46 pmDaljit
Hi Daljit,
Phorm Comms here again. I couldn’t agree more with your comments ref the ICO. Richard Thomas not only warned that we were in danger of sleepwalking into a surveillance society, he went further and said we had woken up in one.
Phorm technology is groundbreaking because it serves relevant advertising (we can have a separate debate about that, but I suspect you’re a realist and believe that without advertising support, lots of sites wouldn’t exist) without storing data: no PII no IP address no browsing histories. No other adserving technology does that. If our system became the standard, there would be no need for search or adserving companies (you know Whooo) to store your personal data for months on end…
Ged — hello again. Thanks for coming to see us a few weeks back http://renaissancechambara.jp/2008/03/10/phorm-factor/I am not sure I can quite agree with your contention that we got our PR strat wrong. I do agree that in normal circs you would blog as much and often as possible.
However, we engaged with Ernst & Young well over a year ago. At that time we did not have the signed contracts we have now and no doubt would’ve been accused of hyping ourselves or our stock. Instead, we worked on getting our technology right, making sure all the privacy components were right and not blowing our own trumpets. We focussed on the privacy and not on the public relations. I think you’ll agree we’ve been open and transparent.
Best wishes both,
Phorm Comms Team
Comment by Phorm Comms team March 20, 2008 @ 7:27 pmNo offence intended but your article is a little inaccurate. Many people made the link to RIPA at least week before FIPR came onto the scene. Certainly the FIPR Open Letter and Press Release gave a lot fo weight to the anti Phorm publicity campaign, but rest assured Phorm’s share price plummeted long before FIPR came along and told us what many of us already knew and publicly voiced.
It is going to be very difficult for any PR team to rescue Phorm if it is even possible. If a few hundred geeks can half a company’s stock value in a week, all the added publicity since is going to make it a nigh on impossible task to turn around.
Add to this the news in NY Times today claiming legislators saying Phorm -must- use an explicit opt in system as opposed to opting customers in by default, and any hopes investors may have had that Phorm moving into the US and into bed with people like AT&T was going to drive the stock value up, is likely to be very very disappointed.
Lets get one thing clear here, Phorm’s success is very much dependent on blanket customer “subscription” via and automatic opt in imposed at the ISP level. One would be hard pressed to see even a small percentage of ISP customers actively opting in to a system that benefits them in no way and compromises their civil liberties.
Alexander Hanff
Comment by Alexander Hanff March 20, 2008 @ 8:43 pmThe Phorm Comms Team are none other than Citigate Drewe Rogerson. So that’s not ‘Comms’ as an internet techie would understand it :-)
They have been assiduous in spinning round the tech forums trying as hard as they can to get the toothpaste back into the tube; and to an extent the tech forums have fallen into the trap of seeking technical knowledge about how Phorm is supposed to work.
Which is kind of like a French aristocrat debating the finer points of how the guillotine works with his executioner; it doesn’t matter how good it is or isn’t, it’s something you don’t want anywhere near your neck….
But I’m surprised the Phorm Tech/Comms/PR Team tipped up here; like ‘never kid a kidder’, I’ve always assumed you should ‘never spin a spinner’
Comment by Midnight_Voice March 20, 2008 @ 8:45 pmTo Phorm Comms Team,
Your Technology is criminally illegal as it breaches RIPA with regards to consent from all parties under s2 and s3 in order for interception of a communication to be lawful. Your PR people seem to keep avoiding this issue, but it is incontestable and the Regulation of Investigatory Powers Act 2000 is very clear and easy to understand on this issue.
It is now only a matter of time before the people who were subjected to the criminal actions of BT during their secret trial last summer, file statements against BT with the police. Rest assured the number of “counts” of these criminal charges will require the case to be heard in Crown Court which means BT will not be able to wriggle out with a £5000 fine and a slap on the wrist; the financial penalties in Crown Court for RIPA offences are unlimited. It is unlikely that Phorm will escape without at least charges for conspiracy should the BT case go to trial. But again, I don’t expect you to answer on these points as you are just a PR spinner as opposed to someone who really knows what is going on.
One point I will make clear is this; customers who DO opt in to the Phorm service could very easily be classed as complicit for initiating a communication with a website knowing that the communication is going to be intercepted. I would be very careful if I were a customer of an ISP using Phorm technologies, because you can rest assured that when the proverbial hits the fan, the ISP will try to use their customers and anyone else they can get their hands on, as scapegoats.
Let me make this clear, once again. RIPA -requires- explicit content from -all- parties, that means the browser -and- the publisher. That makes it realistically an impossible task for Phorm technology ever to be legal under current British law as the task of whitelisting (or blacklisting) every single web page on the Internet based on explicit consensual terms is far beyond the scope of Phorm or indeed any single organisation.
Phorm have lost the battle, please go home.
Alexander Hanff
Comment by Alexander Hanff March 20, 2008 @ 9:03 pmWhat Jed is missing (and Phorm deliberately ignore) is that this is nothing like loyalty card mining (no card: no data) or cctv snooping (of public areas).
Phorm is equivalent to the Post Office opening your letters to friends, family and suppliers and reading every word in order to identify which useless leaflets your local free newspaper should dump on your doormat each week.
Or BT listening in to every phone conversation to better assist a telemarketing droid’s attempts to interest you in their wares.
As for Phorm’s PR team talking up their excellent ’strategy’ — shame you missed that us lowly consumers might expect a complete and secure method of avoiding our data being abused by our ISPs and Phorm? Do you yet accept that an opt-out cookie is completely inadequate?
It’s not that we don’t understand how Phorm works nor appreciate how anonymous you insist the data is reformed: we simply don’t want you to have anything to do with our private data.
Quite how BT Retail, TalkTalk and VirginMedia think they have any right to examine, manipulate and profit from my internet browsing is beyond me but I’m sure they’ll be “open and transparent” explaining it to me. Eventually.
Comment by ceedee March 20, 2008 @ 9:13 pmAll the people who understand how this works DO NOT WANT it.
The people they are trying to help with the anti-phishing option won’t understand how it works so will probably not opt out.
This is how spyware/adware became so widespread.
When non technical users learned about spyware, then anti=spyware software became the norm and spyware is dieing out.
We need to inform non tech people NOW before this is widespread.
Comment by serial March 20, 2008 @ 9:30 pmThanks for your blog, although it has been suggested your info is wrong, it’s nice to see that this company is going down.
What is even nicer is the fact that their PR company are costing them an absolute fortune in trying to mop up the negativity.
If I were them, I would just give up now, there is just way too much bad feeling about this and there is no way on earth that I would agree to OPT IN.
And this is only the start of it. Wait until more people in the UK are educated about this gross invasion of privacy.
Oh a word of advice for any shareholders…. Sell before you lose your money.
Phorm – RIP – You deserve it.
Comment by Phorm - RIP March 20, 2008 @ 9:32 pmagain you bring ernst and young into this ?
Is this the same Ernst & Young involved in the enron Scandal
Is this the same Ernst & Young involved in the WorldCom Scandal
Is this the same Ernst & Young involved in the sprint Scandal
Is this the same Ernst & Yong involved in The ‘Late Trading’ and ‘Market Timing’ Mutual Funds Scandal
To name but 4 of many.
Was this Privacy audit done under UK or USA law?
OH USA law… Why was that is UK law too tough?
why is it i dont trust ernst and young given its past reputation ?
read here : http://www.forbes.com/2002/05/21/0521topnews.html
here : http://www.albetzreporting.com/cs_worldcom.html
and here :
Comment by TheLaughingMan March 20, 2008 @ 9:32 pmhttp://www.sundaytimes.lk/070204/FinancialTimes/ft309.html
Ah, the Phorm PR Spin machine is at it again. Having played local cricket you get to see some very dodgy actions and pathetic attempts at spin.
Let’s keep things simple and clear here. Citigate Drewe Rogerson are a PR company. They are not technical experts in the same way that the various internet forums and investigative reporters on The Register are. They are dealing in spin, answering the direct questions posted in forums like The Register with a standardised response.
Phorm are claiming that Sir Tim Berners-Lee doesn’t understand what is being offered here. He has made it quite clear – his data is his, you can’t have it. What part of that doesn’t Phorm understand?
We are intelligent customers. We do not want Phorm. We do not need Phorm. Try and spin it however you want, the simple bottom line is that there are technically competent people out there who see this “product” for what it really is – an unforgivable invasion of privacy with no regard for the customer. I reject Phorm in its entirety.
You are the weakest link, goodbye.
Comment by Jamie Dowling March 20, 2008 @ 9:43 pmPhorm seem to be avoiding the fundamental issue that underlies this whole system which is: who owns the rights to (and therefore the right to profile) the clickstream data of UK ISP customers? The assumption made by their business model is that the ISPs own this data: as UK consumers wake up to this threat to their privacy, they are beginning to assert their rights to ownership of the intellectual property that is their web browsing profile by sending Data Protection Act 1998 (DPA) Notices to their ISPs explicitly prohibiting them from processing any of their (customers) data for the purposes of direct marketing. It may take a test case to decide which party has primacy, but in the meantime Phorm’s reputation and standing will be decimated by the UK media.
Comment by The Marquis of Kent March 20, 2008 @ 9:43 pmSpeaking as a Virgin Media customer, this represents an invasion of privacy on scale never before attempted on the internet. Phorm will essentially have a ‘wire-tap’ intercept on the total internet communications of 10 million plus individuals. This is a situation that the average person fondly imagines would require government authorities to obtain warrants, on a per person basis, to arrange. As a customer you will have no choice in the matter, you can only opt to not receive targeted ads, you cannot prevent your data stream being profiled. There is not time or space to go into the intricacies of the process, but at every stage it raises questions relevant to the DPA, RIPA and E.U. privacy laws and highlights some of the strategies Phorm have employed to comply with these laws, such as stating that the profilers belong to the ISP, even though the software is written and maintained by Phorm, thus it is true to say that personal data doesn’t get passed out from the ISP to Phorm. A semantic side-step that doesn’t inspire trust.
In terms of invasiveness the profile building that Google, et al indulge in is small beer by comparison. The essential difference here is about choice. I can choose to not use Google services, or regularly delete/refuse their cookies, they only have a window on my internet dealings. Phorm, through their ‘profiler’, see the totality of my panorama. They claim to ‘ignore’ all sorts of sensitive personal data that they will be witness to, but I have to take that on trust, as the patent they filed makes it clear they have the technical ability to harvest all my data and tie it to my IP address. They say they don’t store any data, apart from the remote log they keep for 14 days for debugging purposes.
Much more could be said, but as it’s rather off topic for a PR blog let me come back to that aspect.The only action which will calm the storm is to offer a proper,informed, opt-in, as might turn out to be legally required, which ensures that, for those that don’t opt-in, their data stream doesn’t pass through any equipment belonging to, under the control of, or programmed by, Phorm and that any interception of that data only takes place for the purpose of forwarding it on to those the customer intends it to go to. This would answer the majority of people’s fears. Unfortunately it might be already too late to wait for that calm to descend as, apart from the petition, a considerable body of technically literate customers have been lobbying and educating their MPs,MEPs,and the European Commissioner for Information Society & Media, plus assorted consumer organisations and privacy pressure groups. Where it might go from there is beyond the control of an irate customer base, even if they were to be placated.
Of course a proper opt-in, rather than the opportunity to opt out from Webwise’s anti-phishing protection, would put a dent in Phorm’s business model.
If my understanding is inaccurate in any way I would be happy for the ‘Phorm Comms Team’ to correct me. On the point of their blogging. I would advise them not to contribute to technical blogs, such as ‘The Register’, they simply appear risible and entrench anti-Phorm feeling.
Comment by Oar Wellin March 20, 2008 @ 9:49 pmI don’t know about all this high-brow PR stuff, I’m just a web user, the bloke on the street who’s money everyone is after.
I’ll just take the simple advice of Sir Tim Berners-Lee and move to a supplier who promises to have nothing to do with phorm. There are plenty out there.
I can’t see phorm ever making a profit, their shareholders are just giving their money away to TeamPRphorm.
Comment by Mark March 20, 2008 @ 9:49 pmThere is no “product”, its the parasitic use of our data to interfere with our browsing. Given the roots of this company, and the stealth with which this was trialled last year, I can see no reason to trust a single word from this company.
Comment by Phormweezil March 20, 2008 @ 10:03 pmJust wanted to add …
Don’t think this will just go over the head of the average web user.
We will compare it with the monitoring we are all used to when we use the web at work.
Comment by Mark March 20, 2008 @ 10:14 pmWonder how happy Phorm are that customers of Virgin Media have already started to move to no Phorm Isp’s.
VirginMedia stand to lose a lot of revenue not just on Broadband but on there other packages. Any VirginMedia customer that moves to a non Phorm ISP will have to change there phone line. That will then mean that they will have to disconnect there TV.
So VirginMedia stand to have customers moving to the following. BT, Sky, A Non Phorm ISP.
Virgin will be crazy if they allow that to happen by jumping into bed with Phorm.
Comment by Sirius March 20, 2008 @ 10:48 pmI just want to add a quick comment to thank the author of the blog for allowing all the comments to be posted.
Alexander Hanff
Comment by Alexander Hanff March 20, 2008 @ 11:07 pmPhorms PR Team trying to engage with deep techs head to head was like throwing lambs to the lions.
What were they thinking trying to bluff their way through a community of educated skilled tech professionals, armed only with a cut/paste menu of stock answers.
I think they seriously underestimated the strength of feeling. Good PR advisors would have told the client, in this instance, the product is wrong not the audience.
Pete
Comment by Pete March 21, 2008 @ 12:10 amhttp://www.dephormation.org.uk/
thanks for allowing me to share some real news as relates to any legal cases on the UK horizon.
care of the US NY times and LadyMinion at
http://www.cableforum.co.uk/board/12/33628733-virgin-media-phorm-webwise-adverts-updated-page-102.html#post34510801 for first spoting it.
http://www.nytimes.com/2008/03/20/business/media/20adcoside.html?ref=business
“”Quote:
” As you browse, we’re able to categorize all of your Internet actions ,” said Virasb Vahidi, the chief operating officer of Phorm. ” We actually can see the entire Internet .”
The company, called Phorm, has created a tool that can track every single online action of a given consumer, based on data from that person’s Internet service provider.”
being that this is a PR blob, does this official public COO quote, now rate Phorm up there as the werst run PR campaign EVER ;)
i cant help but comment on Ged’s first comment though as a side note:
“Your privacy is an illusion anyway if you look at the amount of information that supermarket loyalty cards, credit agencies like Experian and you bank has”
your wrong, all these are perfectly controllable if you are a Uk resident and read surlyBonds and his classic CAG Bank charges CRA Defaults thread.
YOU have read it, havent YOU ;)
you really should make the time to educate yourself, EVERYONE
Defaults – a proposed method for removal and the full template letter
Comment by popper March 21, 2008 @ 2:13 amhttp://www.consumeractiongroup.co.uk/forum/legalities/24013-defaults-proposed-method-removal.html
The current media storm started over four weeks ago due to considerable effort in getting into public domain the disgust a number of Virgin Media users felt after digging into the background about Phorm and how it would affect them. The newsgroup virginmedia.feedback has been had unprecedented numbers of complaints and questions whilst at the same time the normally vocal Virgin Media support staff have said almost nothing on the subject.
The PR teams have been all over the web trying to sway opinion. When ever there has been an opportunity for the Phorm PR team to swing into action, they are there with the same old reassurances. Except they are missing the point. Nobody in their right mind wants Phorm, or any Phorm equivalent, especially at ISP level to have their browsing habits looked at by a company like Phorm or any other company for that matter. It’s a step too far.
Comment by Andy M March 21, 2008 @ 3:27 amIf I was one of the PR companies involved in this I would be seriously considering resigning the account. The BT and Virgin brands have suffered a loss of trust and it’s spreading collaterally to other brands on the periphery.
Comment by Oar Wellin March 21, 2008 @ 10:10 amWhat an utter PR disaster. Trying to slashdot their way out of a storm, not realising how cynical an exercise responding to individual blog posts will appear to the community.
And as Andy M said, ‘no-one in their right mind wants Phorm’. Unless you’re an advertiser of course. If my ISP buys, I’ll be moving ISP.
Comment by Paul Campy March 21, 2008 @ 10:33 amSorry Site Owner I have lice on my ISP connection.
Will be fumigating the System in due course, but in the meantime you may wish to bill BT & or Phorm for the extra bandwith they are causing your server to use, DUP/ACKS TCP often gets to me after you have first sent your data to phorm etc on the second attempt.
Bye, off to see the Pest Control Agencies!
Comment by Joab March 21, 2008 @ 10:56 amI think the first PR debacle was Citigate Dewe Rogerson’s very first forray into the ranks of the tech sites that were initially building this story.
By calling themselves ‘phorm tech team’ they instantly discredited themselves, as within a matter of two or three canned cut and paste responses it was fairly obvious to those they were attempting to interact with that it was simply a lie.
That just piled more distrust on a situation revloving around distrust of phorm, who had to change the business name from 121media to try and put a little distance between thee previous adware history before going public with the new scheme.
In a dissertation about how not to run a PR campaign, pretending to be a tech bod from a company and engaging in a technical debate with experts , only to eventually have to admit you really arent a tech bod, or even a phorm employee at all, because you got so out of your depth, is probably pretty high on the list of dont do’s.
Particularly running a PR campaign for a company woefully short on credibility to begin with.
Comment by M Bishop March 21, 2008 @ 11:02 amPhorm and their PR company are fighting a losing battle and the sooner they realise this the better for all concerned.
I wholeheartedly agree with M Bishop vis-a-vis the debacle of the PR team pretending to be the “phorm tech team.” It just goes to show that they lack honesty in even the simplest of things.
You have to begrudgingly admire the gall of Phorm with their ludicrous comments regarding Tim Berners-Lee. They are going to contact him to educate him on the benefits of their system? Do they really believe they are going to succeed in that? There are NO benefits to end users of their system. The much spun “anti-phishing” technology is already present in most mainstream browsers.
That said I really must thank Phorm for the entertainment value I have had from watching their share price crash by over 40% over the last few weeks.
This is a battle Phorm cannot and will not win and I am already passionately informing friends in the US about the danger Phorm represent and I predict that once Phorm signs deals with AT&T, Verizon and Comcast that they will find an even bigger outcry against them over in the US.
Rest In Peace Phorm.
Comment by OF1975 March 21, 2008 @ 2:11 pmFlaming eck what have you started Daljit!
Comment by Drew B March 21, 2008 @ 9:27 pmThe only way for the three ISP’s to wiggle out of this mess now, would be to come clean and announce that they will have nothing further to do with Phorm.
Adding that you have screwed up and will not do it again, will win some respect back, but in BT’s case it might take some time.
Comment by Captain Pugwash (Rtrd) March 21, 2008 @ 11:44 pmI think Phorm’s PR strategy has been more subtle and polyvalent than they have been given credit for.
It might be useful to go back to basics on this and take a guess at how things might play out amongst all the interested parties: advertisers, ISPs, consumers, the technical community, regulators and the political classes.
The regulators and politicians need to know that this will not redound upon themselves. The advertisers sniff opportunity: the ISPs see money. So long as their brands are not noticably tainted, both will be happy.
As far consumers are concerned, Phorm are selling a product no sane and informed person could possibly want. The peculiarly propagandist tone of the consumer copy (eerily reminiscient of the government broadcasts in Starship Troopers), probably reflects this. “a safer experience,
a more relevant experience” – ugh. Whatever – there has to be some evidence of consumer engagement.
The interactions between Citigate (PhormPR/TechTeam) and the technical community may be no more than a smokescreen beneath which the heavy armour rolls on unimpeded. The online PR presents the illusion of engagement to the technical community. They are cordial, yet provocative. They obfuscate endlessly, all the while talking of transparency. Their job is not to say “Black is White”, but “Black is not the colour we’re here to talk about today”. To needle opponents to the point where they no longer act with intelligence.
And meanwhile, in the cold depths of Whitehall, the real work is done.
Remember, all Phorm have to do here is not lose. They’re not here to gain anyone’s respect, or love. They just need to get their wedge in.
Comment by poh March 22, 2008 @ 2:23 pm‘And meanwhile, in the cold depths of Whitehall, the real work is done.
“Look, our clients are good people. An accountant you’ve heard of said so. Yes, the consumer copy’s a bit iffy, but this is a complex message to get across [viz: we know everything about you: your privacy is assured]. I bet you find techies unreasonable too. Have you seen the names they call us? Have we not web-chattered? Have we not blogged. Yes, we may have done a few things that don’t reflect currently accepted best practice. But we’ve drawn a line under that. We’ve moved on. You can understand that. Capiche.’
Meanwhile we are lobbying, amongst many other parties, ministers,MPs, MEPs and E.U. commissioners, particularly pointing out that this will compromise their communications with their constituents, so we’ll see what they capiche.
Comment by Oar Wellin March 22, 2008 @ 5:13 pmOh and I forgot to add, there are degrees of ‘not losing’. Instituting a proper opt-in, of the type outlined many times, would reduce serious opposition to a rump. Phorm could continue their business, but with a considerably reduced profit forecast. Or, they could implement a proper opt-out, that would satisfy a lot of the protest and wouldn’t hit the profits so much. They have reasonable options, they have the opportunity to broker a compromise. Ultimately it’s the ISPs who are most exposed and they will decide if it’s worth selling our privacy, in perpetuity, for thirty pieces of silver, so that Phorm can achieve their dreamed of El Dorado.
Comment by Oar Wellin March 22, 2008 @ 6:23 pmAbsolutely. I’m just keen that people don’t get the idea that because the online PR team are regularly getting trounced on the forums that the battle is almost won.
Personally, I don’t trust Phorm and I don’t trust any ISP who wants to do business with them, opt-in or opt-out. Doubtless one day we won’t have the PhormUKPRTeam to kick around anymore, but it’s what happens to their paymasters that counts.
Comment by poh March 23, 2008 @ 10:03 am‘Absolutely. I’m just keen that people don’t get the idea that because the online PR team are regularly getting trounced on the forums that the battle is almost won.’
Ah yes, I totally agree with you in that case, technical blogs are a small side-show, but they can produce some of the plankton that supports the higher journalistic food chain. They educate journalists and provide them with ammunition to use. It’s the ignorance, which Phorm seek to exploit, that needs to be combated.
We have the policy makers, who are technologically illiterate, compared to the knowledge required to understand the scope of this threat. Then there are those who have enough understanding to believe that Firefox and Adblock will insulate them. There is also a significant block of Gen.Y, who have been in thrall to brands since they were old enough to pronounce ‘Nike’, who can’t even see an issue in this.
The PRs themselves need educating. They are used to running campaigns that have little personal ramifications for themselves, like convincing the masses to chuck over-sweetened chemical concoctions down their necks while they drink premium orange juice hand squeezed by virgins.
In this case they are campaigning away their own personal freedoms. There is no ’superior internet’ they can buy into, while the hoi polloi struggle along having all their traffic intercepted.
Once this Rubicon has been crossed there will be no going back and they would do well to consider this from a personal perspective. When their particular consultancy has dispensed with their services, because they’ve become ‘old and in the way’, they’ll be able to tell their children that they made their contribution to extinguishing personal freedom in this country.
Comment by Oar Wellin March 24, 2008 @ 10:59 amHi,
Just a quick point about the PR — strategy is lead by the inhouse team. Citigate is there in this case (UKPRteam or whatever the alias is) to be the postman, ie deliver the message. As I’ve said on other boards and above, we have a small team and just can’t get to all the boards ourselves. So far so dull. Also, to the techteam point, the first posts by techteam were verbatim responses from, yes, ze techteam at Phorm. Marc B to be precise, top boffin as The Register calls him.
As you will have seen from interviews in El Reg, Net Wars, The Guardian, our own webchats and others, we field tech people and chief exec to answer questions. I wish we had a team of glossy maned sharp suited PRs spinning glamourous yarns, but we don’t. (As Ged above will tell you!).
The fact is all PR is about communication and education (and our point about Tim B-L was not a grand exhibition of gall — we agree with him, and would like the opportunity to explain how his insurance example could not happen with our system). We listen, we respond. We invite people to audit. We invite our detractors to inspect our code (reality check: when was the last time you saw google or any of the other companies fighting tooth and nail to keep your personal data doing that?!).
And on that note, lots of people have made the important point that you can choose to use Gmail or other google services, that it’s opt in. But what if I am someone who does not use google and I write to my friend who has a gmail address? My email is then presumably ‘read’ by google, key words extracted, and used to serve a targeted ad. The data is then stored for over a year by google and ultimately can be traced back to me personally.
At what point does that become an invasion of my privacy? Has my private data been intercepted? How often does it have to happen (once, twice, 100,000 times?) or to how many people (is 1000 acceptable, is 1,000,000?) before it constitutes a gross invasion of privacy?
To Oar Wellin, we are not campaigning away our personal freedoms. We have created a system that (unlike the example above) does not know, care, or need to know, who you are or where you’ve been. And it can’t be reverse engineered to be able to know. Just think for a moment. If we were put under pressure by the government we could not release data on you. If this became the industry standard there would be no need for this rampant data collection and storage — none. So why are you fighting so hard to keep it that way?
Best wishes
Phorm Comms
PS Oar Wellin.. you’re going to suspect me of flattery not praise, but I like the way you write.
Comment by Phorm Comms team March 24, 2008 @ 12:38 pmWelcome back Phorm Comms Team
Let me return comment on a few issues you raised. Firstly, Tim Berners Lee and the example he gave vis-a-vis insurance companies; lets just say for now we accept what you say. Have you actually read your own patent application? Your system has the potential capability to do a great deal more than you currently claim it will. Even the Privacy Impact Assessment you commisioned from 80/20 thinking warns of the dangers of “function creep.” What is to stop Phorm from implementing the kind of scenario he raised 5 years down the line if we allow you to get away with this now? Even your own Chief Operating Officer made a potentially alarming statement to the NY Times:
“As you browse, we’re able to categorize ALL of your Internet actions,” said Virasb Vahidi, the chief operating officer of Phorm. “We actually can see the ENTIRE Internet.” * [please note the capitalised emphasis is MINE]
Also, you may want to go back and read his full comments. I think he was very clear that he views his clickstream data as his, only his and that you cant have it and neither can any ISP that you sign deals with.
When it comes to your point about fielding tech people to answer questions you are right. You have done so but in a very limited capacity. In very limited places such as theregister, the guardian and your own website. What you havent done is to respond with technical information
to questions posted for example on the phorm thread on the cableforum website. Numerous technical questions have been posed and all we have had is PR responses that are less than clear and only obfuscate the debate.
I am still waiting for any kind of response (Even a pr-friendly spun response) as to what information will be held in the “research and debug logs” that phorm will be storing for up to 14 days. That term research has some very wide connotations yet we still have no answer. Care to respond? Right now I will even gladly accept a heavily “spun” response right now just so we can move the debate on.
Also, please allow me to congratulate you on your remarkable achievement of making the first ever infallible computer system that cannot ever go wrong or be abused. Of course, historically, others also thought they had an infallible system that anonymised data. AOL anybody?
Finally, if I can be bold, let me make a suggestion. If you really want to try and deal with the storm of controversy your system has aroused you may want to actually send your tech team to some of the more active forums and blogs so that we can finally get some crystal clear answers to our questions.
Comment by OF1975 March 24, 2008 @ 5:09 pmhullo — I’ve been over at the Guardian reading ye olde lurid tales of Russia and China. I thought we’d all moved past that. We have here!
OF1975 thank you for the response, which was fair and thoughtful. Working from the end up, yes, you are right: it would be good to have more tech people on forums. It’s not practical for us to put MB or the CTO on the boards — they are terrifically busy CTO-ing and running their teams. Also, what we need is a good techy who’s also a good communicator. (would you consider joining? ;)
We’re not claiming infallibility. But we are making the claim, which we are happy to have verified by external parties eg Richard Clayton (who is in the anti-phorm camp) that we don’t store data that could be leaked and traced back to an individual. The problem with AOL / netflix is that they held the data. You can’t leak what you don’t have. That’s the difference.
Re your question on debug logs, he’s a q&a from our webchat on March 20*:
*I realise now the March 20 chat is not on the webwise site — I will chastise the apt person!
harry_tuttle(Q)
Now that Phorm have said that the 14-day logs will only include system ‘health’ information and no ‘anonymised’ user data, how will they debug and refine the system? How is it possible to do anything if you only ever see what comes out and never what goes in? How can a system like that be audited?
MBurgess(A)
Debugging will proceed on the basis of the exceptions raised, and the usual process of attempting to replicate and diagnose the error in a test system. The error will be localized in a particular module and traced down from there. The question on auditing is slightly different – you can audit a system precisely by looking at what goes in and what comes out (which the ISP and external auditors can do). We are also investigating the possibility of having an independent technical expert audit the source code of the data capture elements of the system (subject to protecting our intellectual property, of course).
Ref Sir Tim B-L, we think we might be more aligned than appears. Let’s see. If we manage to have a chat, we’ll publish it (if he allows!) — how does that sound?
Hmm – the quote you reference does not reflect the reality of the system. We have advertiser channels that we match to a random number based on the random number’s behaviour. With reference to function creep — I agree, it’s a concern with all technology. However, we believe we’ve created something great that relies on no personal info and that having massive databases isn’t the way forward. We built the technology to avoid storing the data — it would be a backwards step to add that functionality to the system.
All the very best. Drop us a line if you want a chat face to face or phone to phone with a techie or anyone else — phormcommsteam@phorm.com
We’ll post on here to let people know when the next chat is on. Should be soon.
Phorm Comms
Comment by Phorm Comms team March 24, 2008 @ 7:55 pm“Ref Sir Tim B-L, we think we might be more aligned than appears. Let’s see. If we manage to have a chat, we’ll publish it (_IF HE ALLOWS_!) — how does that sound?”
ROTFL, “if he allows”, thats a classic PCT, so you DO understand the legal implications then!
iv asked this before and never got an answer.
Phorm Comms Team, what is your clients head legal councils name, address and contact phone No in the UK and US.
the same question for all the Phorm contracted PR companys.
they and you do understand that under Uk and EU copyright law, a users key entrys and click stream data are infact that users copyright?.
this legal council do understand the concept of ‘comercial piracy’ under both UK and EU law? and have instructed the Phorm BOD and all persons involved of its implications for them.
and they understand the meaning under UK and EU law of ‘EXPLICIT’ consent.
you understand that you collectively do not have the right to use anothers copyright without written consent or signed contract for comercial purposes.
Comment by IAmTheLaw March 25, 2008 @ 1:26 amHi PCT
Now here’s the thing, you are the solution to a problem that doesn’t exist for the customer.
The only problem you solve is how to make loadsamoney for you and the ISPs by exploiting our click streams, without offering us anything of worth in return. We are working for you for zilch, no click streams, no ISPs, no Phorm. We are the ‘wealth creators’ in this ménage à trois, but expected to work as slaves and like it because hey, you are actually really excited about improving privacy on the internet.
It doesn’t matter if your system is as benign as you claim, it won’t ‘improve’ customers privacy one iota. It will have no impact on the practices of companies like Google for example. All it will do is provide another, very tempting, attack vector, thereby diminishing security.
BTW You should ease up on dissing Google, they might be buying you out soon.
All this applies even if we take your statements at face value, that is, we trust you.
Trust has to be earned but there have been a string of revelations about your history and practices that constantly under-cut your attempts to build trust.
I would imagine that you are not so giddy on the excitement of bringing new levels of privacy to the net that you can’t recall what those issues are.
Here is but the latest, quoting myself from ‘ISPs beware the Phorm storm’…
‘Yes, and for a company which is promising to be so careful with our data it seems remarkably naivete about how the internet works. They are making very bullish statements to potential clients in the U.S. that imply they can know everything about us, whereas in the U.K. they apparently know nothing about us. Errr… through the miracle of the internet we can easily discover how they are selling themselves in the U.S. The dichotomy between their ‘end-user pitch’ and their ‘potential client pitch’, further calls into question their integrity.’
This goes to the heart of it, trust is given to those who say what they mean and mean what they say. Trust is not engender by telling different parties what they want to hear and then reconciling the difference through semantic shenanigans, especially when we are all party to the conversations through the wunerful world of the internet.
“Did you threaten to overrule him?” I think we know the answer to that.
We see the same semantic shimmy with the profiler, its ownership nominally ceded to the ISP, side stepping the problem with delivering personal data to a third party, but with software written and remotely maintained by Phorm, which makes the code audit a blind, as it can be changed at any time without being overseen. The software could no doubt be reconfigured to deliver everything you claim in the patent, what commercial pressures might be brought to bear in the future that could bring that about?
Well, you are creating a permanent bridge across the moat to our data, once established, by precedent, it can’t be removed. Your competitors will ride over it right behind you, waving prospectuses that, it has to be said, are scarier than yours.
I note that the major responsibility to comply with the various data protection laws lies at the feet of the ISPs and, if they are given permission to intercept data, that permission has no limiting clause, such as, ‘only on condition that the data is anonymised’.
In order for your system to work we have to give this consent to the ISPs. If they don’t have an exclusive deal with you, or that deal expires, then the ISPs could be free to hawk that raw data to multiple parties, including the hordes pressing at your back for a piece of the action.
‘you’re going to suspect me of flattery not praise, but I like the way you write.’ < is this you being ‘polyvalent’?
Hahahahaha
’tis a pity there wasn’t more money in joy rides in rusty Migs.
Comment by Oar Wellin March 25, 2008 @ 10:52 amHello again Phorm Comms Team
Thanks for your reply. I am glad to see that you acknowledge it would have been good to have more tech people attend the forums and blogs. I honestly think that would have helped to at least partly assuage some of the bitter feeling that there is on this issue.
Naturally, I understand that Mark Burgess and your Chief Technology Officer are busy people and wouldnt have the time necessary to deal with all the necessary questions. That said, surely someone other than MB or the CTO would have the technical knowledge to be able to come to the forums and give detailed answers to peoples questions? [ Please note kind offers to do this on a one-to-one basis via visits to you or phone calls with techies, in my opinion, undermines your cause. The resistance to Phorm, as has been mentioned by Daljit already, is taking on the Phorm (pun intended) of a “grassroots campaign.” Trying to win us over 1 by 1 with offers of phone calls or in-person visits will not work ]
Playing devils advocate here (not really sure why I am trying to help you – maybe something to do with the spirit of Easter?) if that is not possible then I strongly urge you to communicate to your bosses that they make it possible for one of your techie employees to start addressing the technical questions posted on websites such as cableforum.
As for needing a good techy who can communicate well, let me say that flattery will get you nowhere but please feel free to keep on trying ;) All joking aside, however, I wouldnt be suitable for a number of reasons;
I arent that good a techy, I am more of an enthusiastic and knowledgeable amateur really. I know enough to see the potential dangers inherent in your systems particularly regarding “function creep” and I know enough to know that I dont want Phorm anywhere near my internet clickstream. I know enough to see the dangers represented in your patent application.
Regarding Tim Berners Lee, I wish you good luck. If you do manage to have a dialogue with him regarding your system I would be very interested to read about it. It sounds a great idea to me. If he agrees to it and agrees to allow it to be published are you gauranteeing to release the information even if he remains adamantly opposed?
Regarding the information you posted in relation to the debug logs I would like to say thank you. At first glance I dont see anything there that sets alarm bells ringing but I also note that no mention is made there of the term that had me most worried; namely “research.”
Am I to understand that the data stored for 14 days will only be for debugging purposes and not be used in any other way? If so then on face value I am somewhat reassured on that matter. A comment regarding this at the next webwise chat would be greatly appreciated.
On another point dont you find it interesting that the COO of Phorm was making statements to the NY Times that bear no resemblence to the system you say are going to implement? To be charitable could it be that the system you intend to introduce here in the UK differs greatly from the system you are considering for the US market? If this IS the case then surely this is an important message for you to communicate to us?
Apologies for such a lengthy response. Let me sum things up neatly in just a few words. My advice to Phorm in two simple phrases is this: Technical answers to technical questions. Engage NOT enrage.
Comment by OF1975 March 25, 2008 @ 12:43 pmHave a look at the wikipedia article on Phorm. Phorm Comms Team have tried to edit the article several times. Says it all really.
Comment by Joe March 26, 2008 @ 11:18 amno PRform answering the questions put today?, shame.
heres another post i made elsewere, it would be good to get an answer on the copyright and safe harbor, or at least have others comment on this less talked about and considered aspect.
IAmTheLaw
Comment No. 1013624
March 26 15:57
Phorm can maintain all it wants that it retains no information etc, but it doesnt make it true.
infact their very own Coo to the us market, says the exact oposite as already pointed out in Charles tech blog.
for those that didnt see the quote yet.
http://www.nytimes.com/2008/03/20/business/media/20adcoside.html?_r=1&ref=business&oref=slogin
“”As you browse, we’re able to categorize all of your Internet actions,” said Virasb Vahidi, the chief operating officer of Phorm. “We actually can see the entire Internet.”
and their Patent confirmed this very same extensive capability.
here is Phorm’s patent application toread for yourself
http://www.freshpatents.com/Targeted-advertising-system-and-method-dt20060921ptan20060212353.php?type=claims
for a change heres some less talked about facts:
theres also the fact a customers key entrys and click stream data are their copyright property.
its not for any ISPs or any profiling companys that think they can commercially use and own, without written permission or a signed contract.
they are in law considered committing ‘commercial piracy’ if they use your date (and we are talking companys using these ISPs as well as home workers/users)to make profit,with all the implications that brings .
then theres the ’safe harbor’ question, did the UK ISPs in question, give up their legal protection in EU law by freely signing up and agreeing to ‘a general monitoring of the network’ in that contract for profit.
…now back to the usual DPA, and RIPA comments…
Comment by IAmTheLaw March 26, 2008 @ 9:01 pmRe: Wikipedia Phorm
That 121Media citation in the first line is also ripe for an eyeopening link.
Comment by Mark March 27, 2008 @ 12:58 am[...] relate this to the Phorm issue taking place on these shores. Phorm (and the various PR companies they have hired with their less than convincing spin and attempts at fact manipulation – read points 4 and 7 here ) [...]
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