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Amazon has opted out of Phorm's controversial targeted advertising technology, delivering a serious blow to the UK-listed company which has already prompted a European commission legal action against the British government. Phorm's technology, which is yet to be launched in the UK, allows ISPs to track their customers' activity on the internet in order to target adverts on pages they subsequently visit. Amazon's absence from Phorm's Webwise system deprives the company of the second most visited destination, after eBay.co.uk, among shopping and classified websites in the UK, according to data from Hitwise. It means Phorm will not have access to crucial information about what Amazon users are interested in. Last month the Open Rights Group, privacy campaigners, sent a letter to nine of the internet's biggest names, including Amazon, Google, Bebo, Facebook and Yahoo, asking them to opt out of Phorm's technology "to protect your users' privacy". Google and Bebo are actively considering whether to opt out and a spokesman for Amazon said the company has now removed all its domain names - including Amazon.com - from Webwise. A spokesman for Phorm said the company does not comment on individual cases but the it is understood to be planning a meeting with Amazon's management to explain the benefits of the Webwise system.

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The row over the changes Facebook made to its terms has thrown the light on the rights people surrender when they sign up to use a website. It is likely though that until the row over Facebook's Terms and Conditions went public, few people knew what rights sites claim over the content that their members upload and share. "Less than 25% of users are making a specific point of going to the privacy settings and making changes," said Simon Davies, head of digital rights group Privacy International. Most, he said, are so keen to get using a site after registering that they do not take time to learn what will happen to any data that they are surrendering. Only later do they go back and adjust what happens to their data. "A lot of sites do have strong privacy controls," said Mr Davies. Tweaking these settings can help cut down on how much of a person's data is distributed. "It can make a difference," said Mr Davies, "particularly if the default is set in terms of maximum information flow." Blogger Amanda French looked through the pages where sites such as Facebook, MySpace, Flickr, YouTube and others spelled out their policies with regard to the data that members upload. Although the wording was different, she found that sites such as MySpace, Yahoo, Google and Twitter explicitly backed away from claiming ownership over uploaded content. A brief survey of Europe's Top 5 social sites found a similar situation. The text of the terms available on the UK sites of Facebook, Bebo, MySpace, Friends Reunited and Windows Live all back away from claiming ownership. By contrast, she wrote, the changes Facebook made to its terms were "extraordinarily grabby and arrogant".

The private correspondence of millions of people who use social networking sites could be tracked and saved on a "big brother" database, under new plans being drawn up by the UK government. Ministers revealed yesterday that they were considering policing messages sent via sites such as MySpace and Facebook, alongside plans to store information about every phone call, e-mail and internet visit made by everyone in the United Kingdom. There was immediate uproar from opposition parties, privacy campaigners and security experts who said the plans were over-the-top and unworkable. There have long been proposals, following an European Union directive in the wake of the July 2005 bombings in London, for emails and internet usage to be tracked in order to guard against future terrorist attacks.

On Monday, U.K.-based digital rights organization Open Rights Group submitted an open letter to major online media players, urging them to prevent ISP-level behavioral targeting firm Phorm from tracking user interactions on their Web sites. The letter, sent to Google, AOL, Microsoft, Facebook, Yahoo, Amazon and Ebay, said, "[ORG] believes that it is clearly in your company's interest, it is in the interests of all of your customers, and it will serve to protect your brand's reputation, if you insist that the Phorm/Webwise system does not process any data that passes to or from your website." "We have received the letter and are giving it careful consideration from privacy and business perspectives," a spokesperson for AOL and its social network Bebo told ClickZ News. Similarly, in reference to the ORG correspondence, a Google spokesperson told ClickZ, "We've received the ORG's letter, but we're still considering the points they raised, so we don't have a response to make at this time." According to information published on the British Telecom Web site (one of Phorm's ISP-partners,) site owners can specifically request that their properties are not "scanned" by Phorm's technology, by contacting the firm directly. Phorm announced deals with three major U.K. ISPs over a year ago, but its technology is still yet to be fully deployed. BT has, however, carried out live trials of the platform with some of its customers. Phorm's CEO, Kent Ertugrul, claims that BT will implement his company's technology by the end of the year, but BT itself remains less committed to that timeline. Both AOL and Google have vested interests in the behavioral targeting space, although not in the controversial area of deep packet inspection (DPI), in which Phorm's technology lies. AOL-owned Tacoda targets ads based on users' activity across a range of partner sites, but does not directly intercept ISP-data. Google also announced this month that it will begin testing similar behavioral targe