Ofcom has told internet service providers (ISPs) such as BT and Virgin Media that they must offer more information and clarity around the traffic management policies in place on their networks.
Doing so will help end users gain a better insight into the level of service they will receive and help them make more informed choices when choosing a supplier, Ofcom said.
In particular, Ofcom wants ISPs to provide information on the average speed consumers can expect to achieve, any traffic management systems that are in place and how they could affect a user's service, and details on any services that are blocked.
The organisation's chief executive, Ed Richards, said the watchdog would consider enforcement action if it didn't see the changes it desires from ISPs.
"How ISPs control access to the internet affects us all and it is important that we are able to understand how our access might be restricted," he said.
"Ofcom is now looking to the ISPs to ensure that transparent information is available, and will consider intervening if it does not see improvements."
Ofcom explained in a statement on its approach to net neutrality that such action could take the form of imposing a minimum quality of service level on ISPs to stop firms prioritising the delivery of certain services, but only as a last resort.
"Any use of a minimum quality of service would need to be considered carefully, balancing the benefits of such an intervention against the associated risks," the statement reads.
"There is a concern that service innovation would be hindered if providers of internet access blocked services, or applied traffic management in a manner that discriminated against competing providers."
Patrick Clark, partner and head of telecoms at law firm Taylor Wessing, said the update from Ofcom underlined the growing move towards ensuring net neutrality is followed in the UK but added he was doubtful Ofcom would resort to legal action.
"Although Ofcom may be threatening to step in and issue specific regulation if transparency doesn't improve, it is difficult to see them going forward with this based on ISP behaviour alone, but they may be required to do so if mandated at a European level," he said.
Ofcom's move comes after the European Parliament made a resolution to protect net neutrality in all EU nation states and called on the European Commission to monitor internet service providers and their traffic management practices more closely.
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