29 Sep 2011
Internet service providers (ISPs) will have to ensure that at least 10 per cent of customers are able to receive the advertised speeds for broadband products following new guidance from the Advertising Standards Authority (ASA).
Broadband advertising has always been a controversial area, and many customers complain that they rarely achieve the promised speeds. ISPs including BT and Virgin Media have been taken to task by the ASA in recent months.
The guidance states that ISPs must provide data proving that at least 10 per cent of customers can access the speeds promised, and to make sure that adverts inform consumers that they may not achieve the headline speeds.
ISPs must also not advertise data services as 'unlimited' if there is the risk of charges for exceeding thresholds associated with fair use policies, unless these are "moderate" and "clearly explained in the advertisement".
Mobile phone companies may not describe services as 'unlimited' if there is a charge for exceeding a certain threshold, unless such clauses are clearly displayed in adverts.
Jon James, executive director of broadband at Virgin Media, which regularly performs best in broadband surveys, welcomed the ASA's ruling, arguing that it will stop ISPs hiding behind "catch-all claims they simply cannot deliver".
"This is a much needed and long awaited victory for consumers. The new rules are a big step in the right direction and the greater transparency will ensure people can make more informed choices," he said.
"However, there needs to be vigilant scrutiny to ensure this is genuinely applied to all marketing, and that the spirit behind this demand for change is upheld, not just the minimum necessary to be acceptable."
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