ISBA to advise on online behavioural targeting code

ISBA is set to advise a new consultation on behavioural targeting and online privacy issues led by the Information Commissioner’s Office.

The advertiser body plans to guide the ICO on a number of issues from July, including a statutory code of best practice to cover collecting online information, according to reports.

The code, which will be known as Personal Information Online when it launches in May 2010, is also expected to cover the controversial issues around behavioural targeting.

ISBA hopes the new code of practice will prevent government legislation on the issue.

Online advertising system Phorml has been at the centre of the controversy surrounding behavioural targeting in recent months.

Its technology works by constantly analysing customers’ web surfing to determine users’ interests and then delivering targeted advertising to users when they visit certain websites.

The company came under fire last April when BT admitted that it had tested Phorm in 2006 and 2007 without informing customers involved in the trial. BT then carried out a new invitation-based trial of the technology in October-December 2008.

In September 2008, the UK government confirmed its view that Phorm was legal, following a request from the European Union.

However, the European Commission failed to agree and started legal proceedings against the UK over Phorm to address “several problems with the UK’s implementation of EU ePrivacy and personal data protection rules” (see European Commission begins legal action on Phorm).

In recent months, the Open Rights Group has also campaigned against Phorm’s technology, urging companies such as Microsoft, Google and Facebook to block the online advertising system from tracking users (see Amazon blocks Phorm).