Canada's privacy commissioner says Bell should seek customer consent to track their Internet, TV and phone call use to deliver targeted online advertising.
After receiving an "unprecedented" 170 privacy complaints, Daniel Therrien launched an investigation that determined Bell shouldn't assume that customers are consenting to have vast amounts of their personal information used in this way.
Bell has agreed to make some changes to address privacy concerns, but is refusing a key recommendation to obtain express consent from customers.
The Montreal-based company (TSX:BCE) has said its data collection program isn't breaking any federal telecom rules or privacy guidelines.
The commissioner said he hopes Bell will reconsider its position but the federal agency is prepared to resolve the issue, including possibly taking the matter to Federal Court.
It says customers support its approach of putting the onus on them to opt out of the program.
However, an expert hired by the commissioner found the survey used by Bell to gauge customer views was complex and couldn't be scientifically supported. Yet it also found that more than one third of its customers — some two million people — were not comfortable with Bell's approach.
Therrien said his office will monitor the emerging trend of behaviourally targeted advertising, which isn't only used by Bell, and reach out to other organizations including the wider telecommunications sector.