The Foundation for Information Policy Research (FIPR) has released the text of an open letter to Jacqui Smith, the Home Secretary, on the legality of Phorm Inc's proposal to provide targeted advertising by snooping on Internet users' web browsing.

FIPR calls on the Home Secretary to withdraw her department's previous statement because it has become incomplete and misleading in the light of new technical and legal analysis of Phorm's system, describing it as "an obstacle to the just enforcement of the law".

The letter explains that a technical note by Dr Richard Clayton, FIPR's Treasurer, and a legal analysis by Nicholas Bohm, its General Counsel, show that operation of Phorm's system involves the following:

1. interception of communications, an offence contrary to section 1 of the Regulation of Investigatory Powers Act 2000


2. fraud, an offence contrary to section 1 of the Fraud Act 2006


3. unlawful processing of sensitive personal data, contrary to the Data Protection Act 1998

FIPR warns that UK ISPs could be held criminally liable for their use of Phorm and that the advise offered must be adjusted:


The full letter can be read here:
http://www.fipr.org/080423holetter.pdf (PDF)