In what it described as "responsible approach", the ISP was acting on complaints from copyright owners and terminating the web access of users that it could confirm had participated in illegal file-sharing activity.
To ensure their service was restored, users had to sign an agreement letter stating they would not participate in illegal downloading again.
However, following public outcry, Karoo has now said it plans to implement a 'three strikes' policy that will see persitent offenders issued with three written warnings, before their account is suspended.
"We have always taken a firm line on the alleged abuse of our internet connections," said Nick Thompson, director of consumer and publishing services at Karoo.
"It is evident that we have been exceeding the expectations of copyright owners, the media and internet users. So, we have changed our policy to move in more line with the industry standard approach."
Karoo is the primary supplier of telecommunications and data services to Hull.
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