Looks like Phorm may be facing another headache as The Register has found out that it was quietly used by some American ISPs
, as well. Earlier stories had suggested that Phorm, which tracks your web surfing at the ISP level and customizes ads based on your clickstream data, was only testing the service in Europe, while competitor NebuAd was focused on the US. Phorm is facing some legal inquiries
in Europe, while NebuAd is laying people off
as Congress is investigating
the legality of the service.
But the most bizarre aspect of this is Phorm's claim that its tests with US ISPs was "transparent." If that's the case, it's odd that no one had pointed it out before. That would suggest that it wasn't nearly as transparent as Phorm claims. In fact, it suggests the opposite.