Behavioral ad platform NebuAd violates "fundamental expectations of internet privacy" according to a report from the Free Press and Public Knowledge group, reports [1] MediaPost.

Free Press issued a report which stated "NebuAd's practices resemble several forms of 'attacks' on users that have generated considerable controversy and user condemnation."

The report compares NebuAd's targeting methods to those of browser hijacks. Like the latter, NebuAd "[changes] the normal behavior of the browser without permission." It also alters code on participating websites for consumer-tracking purposes and does not give users adequate opt-out control, said Free Press.

NebuAd serves targeted ads to online users [2], based on detailed web-surfing profiles that ISPs help build. The company called Free Press' accusations "misleading."

NebuAd's UK counterpart Phorm took a beating in the press when BT, a major ISP, used its technology to serve ads to online users without their knowledge [3]. This occurred between 2006 and 2007, but a recent ISPreview survey found 57 percent of readers would leave their ISP if they learned it had partnered with Phorm.

Phorm defended its position by arguing it saves no identifiable information [4], making it safer than search engines like Google or Yahoo, which typically store search data for 18 months.

In May, NebuAd formed a relationship with Charter Communications [5]. Charter provides broadband service to 2.8 million people, making it NebuAd's largest partner so far.

A Senate hearing on privacy and online advertising [6] was scheduled for yesterday afternoon. Of particular concern is behavioral advertising, a revenue opportunity ISPs are increasingly exploring with controversial firms like NebuAd and Phorm.

The hearing was rescheduled for next month.