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Phorm
Phorm, formerly known as 121Media, was a digital technology company known for its contextual advertising software. Phorm was incorporated in Delaware, United States, but relocated to Singapore as Phorm Corporation (Singapore) Ltd in 2012. Founded in 2002, the company originally distributed programs that were considered spyware, from which they made millions of dollars in revenue. It stopped distributing those programs after complaints from groups in the United States and Canada, and announced it was talking with several United Kingdom Internet service providers (ISPs) to deliver targeted advertising based on the websites that users visited. Phorm partnered with ISPs Oi, Telefonica in Brazil, Romtelecom in Romania, and TTNet in Turkey. In June 2012, Phorm made an unsuccessful attempt to raise £20 million for a 20% stake in its Chinese subsidiary.
The company's proposed advertising system, called Webwise, was a behavioral targeting service (similar to NebuAd) that used deep packet inspection to examine traffic. Phorm said that the data collected would be anonymous and would not be used to identify users, and that their service would include protection against phishing (fraudulent collection of users' personal information). Nonetheless, World Wide Web creator Tim Berners-Lee and others spoke out against Phorm for tracking users' browsing habits, and the ISP BT Group was criticised for running secret trials of the service.
The UK Information Commissioner's Office voiced legal concerns over Webwise, and has said it would only be legal as an "opt-in" service, not an opt-out system. The European Commission called on the UK to protect Web users' privacy, and opened an infringement proceeding against the country in regard to ISPs' use of Phorm. Some groups, including Amazon.com and the Wikimedia Foundation (the non-profit organization that operates collaborative wiki projects), requested an opt-out of their websites from scans by the system. Phorm changed to an opt-in policy. According to Phorm's website, the company would not collect any data from users who had not explicitly opted in to its services. Users had to provide separate consent for each web browsing device they used.
Due to increasing issues, Phorm ceased trading on 14 April 2016.
In its previous incarnation as 121Media, the company made products that were described as spyware by The Register. 121Media distributed a program called PeopleOnPage, which was classified as spyware by F-Secure. PeopleOnPage was an application built around their advertising engine, called ContextPlus. ContextPlus was also distributed as a rootkit called Apropos, which used tricks to prevent the user from removing the application and sent information back to central servers regarding a user's browsing habits.
The Center for Democracy and Technology, a U.S.-based advocacy group, filed a complaint with the U.S. Federal Trade Commission in November 2005 over distribution of what it considered spyware, including ContextPlus. They stated that they had investigated and uncovered deceptive and unfair behaviour. This complaint was filed in concert with the Canadian Internet Policy and Public Internet Center, a group that was filing a similar complaint against Integrated Search Technologies with Canadian authorities.
ContextPlus shut down its operations in May 2006 and stated they were "no longer able to ensure the highest standards of quality and customer care". The shutdown came after several major lawsuits against adware vendors had been launched. By September 2007, 121Media had become known as Phorm, and admitted a company history in adware and stated it had closed down the multimillion-dollar revenue stream from its PeopleOnPage toolbar, citing consumers’ identification of adware with spyware as the primary cause for the decision.
In early 2008 Phorm admitted to editing its article on Wikipedia—removing a quotation from The Guardian's commercial executives describing the opposition they have towards its tracking system, and deleting a passage explaining how BT admitted misleading customers over covert Phorm trials in 2007. The changes were quickly noticed and reversed by the online encyclopedia's editors.
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Phorm
Phorm, formerly known as 121Media, was a digital technology company known for its contextual advertising software. Phorm was incorporated in Delaware, United States, but relocated to Singapore as Phorm Corporation (Singapore) Ltd in 2012. Founded in 2002, the company originally distributed programs that were considered spyware, from which they made millions of dollars in revenue. It stopped distributing those programs after complaints from groups in the United States and Canada, and announced it was talking with several United Kingdom Internet service providers (ISPs) to deliver targeted advertising based on the websites that users visited. Phorm partnered with ISPs Oi, Telefonica in Brazil, Romtelecom in Romania, and TTNet in Turkey. In June 2012, Phorm made an unsuccessful attempt to raise £20 million for a 20% stake in its Chinese subsidiary.
The company's proposed advertising system, called Webwise, was a behavioral targeting service (similar to NebuAd) that used deep packet inspection to examine traffic. Phorm said that the data collected would be anonymous and would not be used to identify users, and that their service would include protection against phishing (fraudulent collection of users' personal information). Nonetheless, World Wide Web creator Tim Berners-Lee and others spoke out against Phorm for tracking users' browsing habits, and the ISP BT Group was criticised for running secret trials of the service.
The UK Information Commissioner's Office voiced legal concerns over Webwise, and has said it would only be legal as an "opt-in" service, not an opt-out system. The European Commission called on the UK to protect Web users' privacy, and opened an infringement proceeding against the country in regard to ISPs' use of Phorm. Some groups, including Amazon.com and the Wikimedia Foundation (the non-profit organization that operates collaborative wiki projects), requested an opt-out of their websites from scans by the system. Phorm changed to an opt-in policy. According to Phorm's website, the company would not collect any data from users who had not explicitly opted in to its services. Users had to provide separate consent for each web browsing device they used.
Due to increasing issues, Phorm ceased trading on 14 April 2016.
In its previous incarnation as 121Media, the company made products that were described as spyware by The Register. 121Media distributed a program called PeopleOnPage, which was classified as spyware by F-Secure. PeopleOnPage was an application built around their advertising engine, called ContextPlus. ContextPlus was also distributed as a rootkit called Apropos, which used tricks to prevent the user from removing the application and sent information back to central servers regarding a user's browsing habits.
The Center for Democracy and Technology, a U.S.-based advocacy group, filed a complaint with the U.S. Federal Trade Commission in November 2005 over distribution of what it considered spyware, including ContextPlus. They stated that they had investigated and uncovered deceptive and unfair behaviour. This complaint was filed in concert with the Canadian Internet Policy and Public Internet Center, a group that was filing a similar complaint against Integrated Search Technologies with Canadian authorities.
ContextPlus shut down its operations in May 2006 and stated they were "no longer able to ensure the highest standards of quality and customer care". The shutdown came after several major lawsuits against adware vendors had been launched. By September 2007, 121Media had become known as Phorm, and admitted a company history in adware and stated it had closed down the multimillion-dollar revenue stream from its PeopleOnPage toolbar, citing consumers’ identification of adware with spyware as the primary cause for the decision.
In early 2008 Phorm admitted to editing its article on Wikipedia—removing a quotation from The Guardian's commercial executives describing the opposition they have towards its tracking system, and deleting a passage explaining how BT admitted misleading customers over covert Phorm trials in 2007. The changes were quickly noticed and reversed by the online encyclopedia's editors.