If you read the linked document it is pretty obvious that a lot of the copy has been provided by Phorm themselves. It would appear that it is an attempt by Phorm to prop up their shares which have been pretty much in free fall for the last couple of months. At times of pressure (and it's pretty clear that Kent is under extreme pressure at the moment - witness the way he disgraced himself when being interviewed for Click!) people tend to let slip facts that they really intended to keep hidden. This is one of those occasions. I've also seen a post saying that a user had observed strange behaviour which is now believed to be the result of the testing of the Phorm system by VM - although we are waiting for evidence to be posted so I'm reserving judgement on this one.
Also worth considering is that they are issuing revised T&C's which include in paragraph B1(i) "With your permission, we may monitor email and internet communications, including without limitation, any content or material transmitted over the service".
The "with permission" is interesting - does it mean opt-in or opt-out? Phorm have made it abundantly clear that they prefer opt out.
jelv
Plusnet ADSL PAYG Jan 2004 - (current)
Plusnet Dialup Nov 2001 to Jan 2004
Previously Compuserve, BT & LineOne Dialup