UK watchdog to crack down on misleading broadband ads
21 Jan 2016
The UK advertising watchdog plans to crack down on the way broadband packages are marketed after research showed that four out of five people were not able to work out how much they were actually required to pay.
The Advertising Standards Authority has cracked down on the manner in which companies including Sky, BT, Virgin Media, TalkTalk, EE, 3 and O2 advertised after finding that the public remained confused and was being by misled by broadband deals.
The ASA would introduce new advertising rules from 30 May after research, conducted with media regulator Ofcom, revealed widespread confusion, with 81 per cent of those surveyed not being able to correctly work out the total cost across the lifetime of a broadband contract when asked to do so.
Currently, broadband ads featured an range of prices including the monthly cost of the broadband itself, separate line rental and a multitude of additional pricing options such as installation fees, introductory offers and contract length.
According to the research only 23 per cent of survey participants could correctly work out the total cost per month of a broadband package and all extras in the first viewing of an ad.
Almost two-thirds (64 per cent ) of those who failed to correctly work out the total monthly cost, despite a second viewing, thought the broadband price was the total charge and line rental costs were not applicable.
Additionally, 74 per cent said information about the price of introductory deals, discounts, activation, delivery charges and the length of the contract was either "fairly" or "very" unclear.
According to the ASA, the showed that the current approach typically taken by advertisers "is likely to mislead consumers and therefore, from May 30, will in all likelihood break the rules".
The ASA said it remained open-minded about how advertising pricing but would suggest that providers stop separating out line rental and give greater prominence to the contract length, any post-discount pricing and up-front costs.
