Phorm is a obvious idea, associate ads with what a user views and they will be more likely to click on these ads. There are obvious privacy concerns with the system what gets associate to the users, coupled with rushed legislature link. Could land many people in hot water and prison.
Phorm is just the latest incarnation of what is a global trend, we already collect enough data to be able to track every persons moves transactions and friends, we just don't want the dots to be connected up. Thats when it will go wrong. For better or for worse we are going digital, and more so with web 2 centralising the data we have, making it even easier for profiles of innocent people to be made.
The problem with these systems are if they are put together, no is squeaky clean. For instance I have peace of music in my iTunes library called "Thank God for the Terrorists" it isn't too hard to imagine if I was traced buying that piece of music, I could be arrested.
We need to fight to make sure these database aren't connected up anymore then they already are, we don't need ID cards, or CCTV to stop terrorism and crime. We need to grow up, and tackle the root causes. It's very dangerous to even think these things do anything to stop crime or terrorism.
“Those who desire to give up freedom in order to gain security will not have, nor do they deserve, either one.” - Benjamin Franklin