Virgin tells customer: we've dropped Phorm

Virgin Media is writing to customers to tell them it has dropped controversial web advertising service Phorm - even though it hasn't.

Peter Bayliss, a reader of PC Pro's sister title, Micro Mart, wrote to Virgin to complain about the company's plans to deploy Phorm's Webwise system.

Mr Bayliss received a prompt written reply from Virgin's "customer concern" department, assuring him that the cable provider had severed all ties with Phorm.

"After much consideration, Virgin Media decided not signed up [sic] for Phorm because of amongst other things, the Webwise ad monitoring system," the letter reads.

"The roll-out of Phorm's Webwise technology has been dogged by controversy following news that large well known telecoms company ran two trials using the software without seeking its customers' permission in 2006 and 2007," the letter adds.

"Virgin Media would have offered an an [sic] 'Opt In' option to it's [sic] customers in relation to Phorm's Webwise but decided not to sign up in any way," the letter states.

However, a spokesman for Virgin Media claims the letter has been sent out in error and that the company's relationship with Phorm is unchanged. "There has been no change in our position," the spokesman told PC Pro. "We haven't committed to Phorm or pulled away from it either."

Asked to explain why the company's customer services department was sending out such letters, the spokesman said: "we haven't issued any instructions [about Phorm] to customer care." Virgin said it would issue fresh guidance to its customer support staff.

Virgin Media is one of three British ISPs who have agreements in place with Phorm - the other two being BT and Carphone Warehouse - but none has yet to commit to a full rollout of Phorm's Webwise technology, which uses deep-packet inspection to target ads at users.