http://news.bbc.co.uk/2/hi/technology/7331493.stm
From the page: “Technical analysis of the Phorm online advertising system has reinforced an expert’s view that it is “illegal”.
The analysis was done by Dr Richard Clayton, a computer security researcher at the University of Cambridge.
What Dr Clayton learned while quizzing Phorm about its system only convinced him that it breaks laws designed to limit unwarranted interception of data.”