The Department for Business, Enterprise and Regulatory Reform has released a statement to European Union in response to questions from regulators. The statement said that Phorm is able to operate under existing laws.
"Users will be presented with an unavoidable statement about the product and asked to exercise choice about whether to be involved," the statement read. "Users will be able to easily access information on how to change their mind at any point and are free to opt in or out of the scheme," it continued.
By partnering with ISPs (Internet Service Providers) including BT, Phorm can target ads at users signed up to the providers. Phorm has unleashed a PR offensive having seen media scrutiny and consumer concerns grow to the point where anti-Phorm pressure groups have been formed.
Phorm chief executive, Hugo Drayton said, "The UK's Government's position on Phorm's technology reflects our common commitment to transparency and superior standards of online privacy."