Stockopedia | Share Prices, Share News and Company Research

Webwise - is there a criminal case to answer for BT's Phorm trials?

Thursday, Feb 25 2010 by
2

BT's unfortunate experiment with Phorm's technology in 2006 was carried out on 18,000 unsuspecting members of the public according to this article published by The Register.

Opponents claim that the technology violates The Regulation of Investigatory Powers Act 2000 (RIPA), which makes intercepting internet traffic without a warrant or consent an offence.

Documents which appear to originate from inside BT Retail show how it might work led Professor Peter Sommer, the author of the groundbreaking 1980s book "The Hacker's Handbook" and a frequent expert witness in data crime trials, to say that

this appears to be an interception under RIPA. The real issue will be about how consent is obtained.

BT chose to market the system as "Webwise," focusing on an anti-phishing angle to ensure that customers didn't opt out of a service that they had automatically been opted-in to. 

BT's original FAQ on Webwise (no longer available*) made it clear that subscribers would be opted in by default. "I didn't switch on this service. Why do I have to switch it off?," one 'FAQ' asked.

The response said: "We believe BT Webwise is an important improvement to your online experience - giving you better protection against online fraud and giving you more relevant advertising. We realise that you may not want to use the free service, so we've made it quick and easy to switch on and off."

 Special Offer: Invest like Buffett, Slater and Greenblatt. Click here for details »

Other potential customers for the technology, Carphone Warehouse and Virgin, quickly fell by the wayside as the negative publicity grew, followed soon after by website partners such as the Guardian.

The technology was even criticized by the US Congress and eventually The European Commission considered intervening over the failure of UK data watchdogs to punish BT.

It now seems that CPS is assembling a case, a worry for CEO Livingston who was running BT Retail throughout most of this sorry and shameful affair.

SW10

*BT's current Webwise holding page is here.


Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.


Do you like this Post?
Yes
No
3 thumbs up
1 thumb down
Share this post with friends



BT Group plc is a communications services company. The Company is engaged in providing and managing data and voice networks and providing a range of services over these networks. It operates in approximately 170 countries worldwide. The Company is a principal communications services provider, selling products and services to consumers, small and medium-sized enterprises and the public sector. The Company also sells wholesale products and services to communications providers in the United Kingdom and around the world. The Company supplies managed networked information technology (IT) services to multinational corporations, domestic businesses and national and local government organizations. Bt has four lines of business: BT Global Services, BT Retail, BT Wholesale and Openreach. In December 2012, the Company sold of its remaining 9.1% iin Tech Mahindra Ltd to institutional investors. more »

Share Price (Full)
322.2p
Change
8.2  2.6%
P/E (fwd)
12.2
Yield (fwd)
3.4
Mkt Cap (£m)
24,745



  Is BT fundamentally strong or weak? Find out More »


What's your view on this thread? to Comment Now

 
 
You are feeling neutral

Use the £ sign in front of a ticker to turn £VOD into Vodafone PLC

You can track all @StockoChat comments via Twitter