See also this story on The Register:

The Guardian has pulled out of its advertising deal with Phorm, following a public outcry over plans for the UK's three largest ISPs to report the browsing habits of their customers in exchange for a cut of targeted advertising revenues.

The national newspaper had confirmed its involvement with Phorm in a story on 14 February.

The U-turn makes The Guardian the first commercial partner to dump Phorm since launch (although it is still months before the system is due to go live). If it had remained signed up as a publisher, readers would have been served targeted advertising based on the content of other websites they visit.