Behavioral ad targeter Phorm will be allowed to operate its ad serving system in the UK, but regulators say the company must adhere to a strict set of rules, BBC reported. While Phorm can roll out its ad targeting system, UK officials the company must seek users’ consent first and allow for a clear opt-out feature. The government’s dictates follow an investigation by the European Union, which was sparked by complaints that Phorm had been planning to test its ad targeting system with telco BT’s broadband network weeks ago.

The system’s trial was suspended in early September. Virgin Media (NSDQ: VMED) and Carphone Warehouse’s TalkTalk were also awaiting a test of the targeting tools. UK officials said they were satisfied with Phorm’s response to the EU’s questions about protecting users’ privacy, but wants to ensure that it goes forward under strict controls. At this point, Phorm’s early compliance seems to have spared it the difficulties of NebuAd in the US. Like Phorm, NebuAd came under Congressional and regulatory scrutiny when news that it was prepping a test of its behavioral targeting ads with broadband ISP Charter Communications (NSDQ: CHTR). Over the past few weeks, NebuAd has lost its CEO and seen its targeting trials suspended indefinitely.

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