The Renew ad firm has been using technology embedded in the hulking receptacles to measure the Wi-Fi signals emitted by smartphones, and suggested that it would apply the concept of "cookies" tracking files that follow Internet users across the Web to the physical world.
"We will cookie the street," Renew Chief Executive Kaveh Memari said in June.
But the City of London Corporation insisted that Renew pull the plug on the program, which captures smartphones' serial numbers and analyses signal strength to follow people up and down the street. Renew didn't immediately return a call seeking comment on whether it would comply with the authorities' demand.
It's unclear how Renew had planned to use the data, which were gathered by its reinforced, shoulder-height pods stationed near St. Paul's Cathedral and Liverpool Street Station.
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But if a company could see that a certain smartphone user spent 20 minutes in a McDonald's every day, it could approach Burger King about airing an ad on the bin's video display whenever that user walks by at lunchtime. Or it could target its commercials in real time by distinguishing between people who work in the area and visiting tourists.
Renew first tested the technology using 12 trash cans in May, but the story didn't get traction until last week when a sudden burst of publicity surrounding the "spy bins" put authorities on the defensive.
"Anything that happens like this on the streets needs to be done carefully, with the backing of an informed public," read a statement from the City of London Corporation, which is responsible for the city's historic "square mile," home to financial institutions, law firms and tourist landmarks.