There is a lot of backlash against this privacy intrusion, and it seems that UK site The Register is leading the media battle against the scheme.
One of the major sticking points is that there is not as yet a definitive answer on how users can opt-out. Two possibilities are on the table, one is for a cookie that allows Phorm to scrape the packets sent through their machines, the other is to have a cookie that means packets sent through the server are not used by the advertising algorithms.
Both options mean that our personal data will go through Phorm hardware.
Another problem is that Phorm use WebWise to add a practical aspect to their service. They claim that this site will filter out phishing attacks for unwary users.
Amongst the rules that people consider breached by this company and their proposed ideas are the Data Protection Act, and the Regulation of Investigatory Powers Act."