The Foundation for Information Policy Research have published two excellent documents regarding technical aspects and legal concerns surrounding the Phorm "Webwise" system. Dr Richard Clayton and Nicholas Bohm's documents and an open letter to the Home Office can be found at the link below.

http://www.fipr.org/press/080423phorm.html

As always, we would encourage you to learn as much as possible about this system. There are a number of informative sites that are dedicated to the subject - http://www.badphorm.co.uk is a great starting point as well as our own blog at http://www.lavasoft.com/support/securitycenter/blog/?p=203#more-203