Phorm, the company that sells ISP’s a targeted ad spying system, have been very havily embroiled in a PR offensive that quite frankly doesn’t seem to be going anywhere.
All Phorm no substance.
Phorm’s PR companies are trying to present the system being offered in terms of service and value; the issue that they are facing is that they are fighting against technology people who actually understand how the system is put together and see beyond the simple oh it’ll just give you ‘more relevant ads.’
But the New York times sums the Phorm ’service’ up very nicely
New York Times, 20th March 2008
“As you browse, we’re able to categorize all of your Internet actions,” said Virasb Vahidi, the chief operating officer of Phorm. “We actually can see the entire Internet.”
Ironic
Ever get the feeling that the PR machine isn’t working quite as smoothly as it perhaps should?
I find it amusing that the biggest issue Phorm faces is controlling its public image in light of what is out there on the wider internet. It’s ironic that a firm built on the principal of profiling Internet communications is having an Internet communications crisis of its own.
Phorm’s share price has tanked, the FIPR believe that it’s methodology may be illegal, and now ISP’s who were once going to be partners are facing lawsuit’s as a result of their complicity. There is only one office in the UK that has the power to stop Phorm or let them have their way with our Internet connections. the office of Richard Thomas the Information Commissioner. But its not quite that simple.
His office is in the process of piecing together a reprot that will address the legality of Phorm’s proposed system, the results of which are expected in a couple of weeks.
Relationships
But the damage is done, the public’s relationship with their ISP has been damaged by this, the reputations of those ISP’s are also damaged. Phorm’s involvement will cost millions in lost customers, millions in future sales, and that is just the beginning. The PR blitz Phorm is engaged in will not help those ISP’s who are already losing customers as a result.
Final Opinion
Phorm is a double edged sword, a poison apple almost. The companies and organisations that use it will be viewed as de-valuing their customer base and also as miss-treating the privacy and security of their customers. Those same customers will leave those ISP’s as they already are doing so, and are doing so before the service is even live. Phorm went down this path without having the full legality of their proposal supported by the ICO. Their investors are deserting the company as I would envisage rats from a sinking ship. BT is under threat of legal action as it initiated a trial secretly during the Summer of 2007 without informing customers what they were doing or why.
If the ICO’s opinion does not rule in Phorm’s favour then there will be a public reckoning. If it does then public opinion will be damaged along with the reputation of the ICO and the companies that use the technology.
In the meantime the message is clear if you are an ISP anywhere in the world.
PHORM = BAD NEWS FOR YOUR BUSINESS.
Today Phorm is staring down:
Barrel of a Gun by Depeche Mode
Phorm’s PR — putting lipstick on a pig
Apt, very apt!