EU starts action against Britain over data privacy

BRUSSELS, April 14 (Reuters) - The European Commission started legal action against Britain on Tuesday for what the EU executive called a failure to keep people's online details confidential.

EU Telecoms Commissioner Viviane Reding said the action related to how Internet service providers used Phorm PHOR.L technology to send subscribers tailor-made advertisements based on websites visited.

Reding said Internet users in Britain had complained about the way the UK applied EU rules on privacy and electronic communications that were meant to prohibit interception and surveillance without the user's consent.

"Technologies like Internet behavioural advertising can be useful for businesses and consumers but they must be used in a way that complies with EU rules," Reding said in a statement.

"We have been following the Phorm case for some time and have concluded that there are problems in the way the UK has implemented parts of the EU rules on the confidentiality of communications," Reding said.

She called on Britain to change its national laws to ensure there were proper sanctions to enforce EU confidentiality rules.

Unless Britain complies, Reding has the power to issue a final warning before taking the country to the 27-nation EU's top court, the European Court of Justice.

If it rules in favour of the European Commission, the court can force Britain to change its laws. (Reporting by Huw Jones, editing by Dale Hudson)