Phorm Wants To Bribe YouPhorm tells us they've no plans to pay you, denies report...
(
old news - 09:09AM Wednesday Jan 07 2009)
tags: legal · prices · business · privacy · content · consumersWe've been talking about behavioral advertising services (and the sale of your browsing data) for years now, from
interviewing now-derailed NebuAD's CEO, to exploring how former rootkit developer Phorm has been pitching their service as an
anti-phishing solution. One of many questions we've seen raised fairly consistently: if ISPs are estimated to make up to $5 per month, per user, what's wrong with passing some of that on to consumers? Apparently, Phorm continues to consider the idea as an incentive, according to
New Media Age:
...the controversial ISP behavioural targeting company, which works by serving relevant ads to consumers based on their surfing habits, is undertaking research to discover what kind of offers users would regard as valuable enough to sign up. It's thought promotions could include money off phone or broadband bills. They would be promoted
Consumer research demonstrates strong demand from Internet users for our current offer which improves their browsing experience by reducing the amount of irrelevant advertising they see and helping to protect them from phishing/online fraud. -Phorm |
Of course Phorm, who has plans to expand operations
into the United States, has pitched this idea previously in surveys to customers -- though nothing ever came of it. If such an idea does progress, the money would have to come out of the ad companies' pockets. ISPs already
sell your clickstream data under the table without your consent and without passing on the savings in the form of lower bills.
It's unlikely they want this arrangement to change.
In speaking with Phorm, they say they've announced no incentive program yet, and it doesn't sound like they plan to. According to a company spokesperson, the company believes that the improved "browsing experience" of having your browsing data bought and sold should be reward enough.
"We have never announced an incentive program," spokesperson Stephanie Willerton tells us. "Each of our ISP partners will decide how to present Webwise to their customers, giving users a clear choice over their participation," she says. "Consumer research demonstrates strong demand from Internet users for our current offer which improves their browsing experience by reducing the amount of irrelevant advertising they see and helping to protect them from phishing/online fraud."
Of course to many it's about privacy, not money. If Phorm wants to expand to the United States, they've still got to get past a Congress concerned that behavioral advertising systems may violate both privacy and wiretap laws. NebuAD imploded after ISPs, fearing legal liability, got cold feet. Phorm can't operate in the United States until the legality of such services are worked out (or ad and telco lobbyists convince Congress to back off).