Emails between Phorm and Home Office described as 'jaw dropping' by Liberal Democrat home affairs spokeswoman.
The Home Office has been providing internet advertising company Phorm with "informal guidance" on the legality of the firm's service, it has been alleged.
Emails between the two parties were released following a Freedom of Information Act request from a member of the public and given to the BBC. According to the broadcaster, the messages show the Home Office asking Phorm if it was "comforted" by its stance, while Phorm asked by the department to comment on advice it is creating on behavioural targeted advertising.
Baroness Sue Miller, Liberal Democrat spokeswoman on Home Affairs, told the BBC that the emails were "jaw dropping". She added: "The fact the Home Office asks the very company they are worried is actually falling outside the laws whether the draft interpretation of the law is correct is completely bizarre."
However, a Home Office spokesperson hit back at the allegations, saying: "We have repeatedly said since these documents were released a year ago that the Government has not endorsed Phorm or its technology.
"We are committed to protecting the privacy of UK consumers and will ensure any new technology of this sort is applied in an appropriate and transparent manner, in full accordance with the law and with proper regulation from the appropriate authority."
Phorm has been the subject of a large amount of controversy since its creation. BT carried out trials of the system without users' consent, while the European Commission has begun legal proceedings against Britain over its acceptance of Phorm.
