
A reply from virginmedia customer support( edited to reduce tedium)
I am sorry that the information that we are going to start using phorm
has worried you, here is some information to help give you a better
understading in regards to what this is.
A safer experience
Webwise will help customers avoid scams, such as 'phishing' - this is
where someone pretends to be a well known brand, like a bank, but is
looking to steal confidential information. [SNIP..]...identity theft. In this way Webwise helps to secure our customers' privacy.
A more relevant browsing experience
Another great thing about Webwise is that it can help reduce irrelevant
advertising. As customers browse web pages, Webwise looks at things like
search terms, and learns what topics might be of interest. This is done
without collecting any personal information, so once again their privacy
is protected. These topics are then used to help filter out adverts that
might be irrelevant - instead they'll simply see an advert that will
match a topic they're are more interested in.
Don't worry, they won't see any more adverts than they currently do,
they'll just be more relevant. [SNIP...]
Protecting customers' privacy
Webwise has been designed from the ground up to protect our customers'
privacy and anonymity. As the system only learns about topics of
interest, it does this anonymously, ensuring their privacy is completely
protected.
Neither the web addresses, nor search terms they use are stored. They
are purely matched to an advertising topic and then discarded.
Webwise doesn't store their internet (IP) address or keep track of their
browsing. The system or advertisers won't know who you are or the
websites they've visited.
No personally identifiable information such as email addresses,
surnames, street addresses, or phone numbers are ever gathered.
No sensitive or personal financial information, such as credit card
numbers, login IDs, passwords or bank account numbers are ever gathered.
We found that this system met our high standards for simplicity and
privacy - so customers' privacy is assured. These privacy standards were
also verified independently by Ernst & Young who conducted a detailed
audit of the whole process and Webwise solution.
Customers won't be forced to take up Webwise, so they'll be able to keep
their internet experience as it is now...
[END...]
That last phrase leaves it deliberately ambiguous as to whether or not users will be required to Opt In or Opt Out -I wrote back to Virgin Media to request clarification on this point.