Yahoo Finance Shake-up in advertising of broadband speeds after consumer backlash
Broadband providers will only be allowed to advertise the average speed of their service rather than a top speed only available to a handful of households after a dramatic shake-up of the rules by the advertising regulator.
The crackdown on misleading claims means companies can only advertise download speeds that are available to at least 50% of customers at peak time. At present broadband providers can promote an “up to” speed that is available to at least 10% of customers.
The move follows a backlash by consumers about the speed of their broadband connection not being as quick as advertised.
Which?, the consumer group, has campaigned for changes to broadband advertising and said the new rules meant householders would be able to see the realistic speed of their internet connection before signing up to a deal.
Alex Neill, managing director of home products and services at Which?, said: “Millions of households are currently experiencing broadband speeds that just don’t live up to their expectations and unrealistic adverts showing speeds you’re never likely to get don’t help.
“Which? has been campaigning for action on this, so it is good to see people may finally see the speeds they could achieve before they sign up to a deal.”
The Committees of Advertising Practice (CAP), which writes the UK Advertising Codes, said the new rules would take effect on 23 May 2018 after a six-month implementation period.
Testing by consumer groups has found that as many as three-quarters of households pay for an advertised broadband speed they never receive, despite most expecting to reach that speech when they sign up.
Shahriar Coupal, director of CAP, said: “There are a lot of factors that affect the broadband speed a customer is going to get in their own home - from technology to geography, to how a household uses broadband.
“While we know these factors mean some people will get significantly slower speeds than others - when it comes to broadband ads our new standards will give consumers a better understanding of the broadband speeds offered by different providers when deciding to switch providers.
“We continually review our standards to make sure they reflect consumers’ experiences, the technology available and the evidence base to make sure our standards are in the right place. Following extensive research and consultation, we hope our new standards will improve customer confidence in future ads.”
The government welcomed the move and said existing rules had led to “incredibly misleading” claims.
Matt Hancock, minister for digital, said: “I’m delighted to see that CAP is finally changing the way broadband speeds are advertised.
“Headline ‘up to’ speeds that only need to be available to 10% of consumers are incredibly misleading - customers need clear, concise and accurate information in order to make an informed choice.”
The ASA also concluded that providers were not misleading consumers by using the description “fibre broadband” for services that use fibre-optic cables for only part of the connection.
It based its decision on research that found that consumers did not notice fibre claims in adverts, did not treat them as a priority when choosing a package and saw fibre as a “shorthand buzzword” to describe modern, fast broadband.
The price comparison service uSwitch.com said that broadband providers still needed to provide more information to customers about the speed of services in their local area.
Richard Neudegg, head of regulation at the site, said: “Whilst this change might reduce the number of consumers that feel let down, the reality is that a national advert can never accurately communicate broadband speeds because speeds are so specific to your individual property.
“In order for the industry to deliver broadband services that better align with consumer expectations, providers need to allow for far more straightforward ways to quickly and easily compare the services and speeds available from different suppliers at their own home, side-by-side.”
Broadband providers said they welcomed the changes to advertising rules. Andrew Glover, chair of ISPA, which represents internet service providers, said: “ISPA supports today’s change to rules governing the advertising of broadband speeds as an important way of providing consumers with clear and accurate information.
“The new rules, alongside existing steps of providing speed information at point of sale, the ability to exit a contract and switching, mean consumers have a number of tools at their disposal to make an informed choice about which ISP [internet service provider] or broadband service is right for them.”
