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Broadband pricing to face crackdown from ad watchdog Broadband pricing to face crackdown from ad watchdog
(4 months later)
The advertising watchdog is to crack down on the way broadband prices are marketed – but will not be tightening rules on the contentious issue of how top speeds are advertised.The advertising watchdog is to crack down on the way broadband prices are marketed – but will not be tightening rules on the contentious issue of how top speeds are advertised.
The Advertising Standards Authority is to force companies including Sky, BT, Virgin Media, TalkTalk, EE, 3 and O2 to only be able to advertise a single-figure monthly cost for their broadband packages.The Advertising Standards Authority is to force companies including Sky, BT, Virgin Media, TalkTalk, EE, 3 and O2 to only be able to advertise a single-figure monthly cost for their broadband packages.
Currently, consumers are not provided with an “all in” costs figure, with line rental typically stated separately and extras such as installation fees only revealed in the small print.Currently, consumers are not provided with an “all in” costs figure, with line rental typically stated separately and extras such as installation fees only revealed in the small print.
The ASA was moved to order more simplified broadband pricing ads after research found that more than one in five consumers could not work out the correct monthly price even after viewing a TV ad twice.The ASA was moved to order more simplified broadband pricing ads after research found that more than one in five consumers could not work out the correct monthly price even after viewing a TV ad twice.
The new rules, which come into force on 31 October, include providing an all-inclusive monthly price, giving more prominence to contract lengths and costs after any discount offer has expired.The new rules, which come into force on 31 October, include providing an all-inclusive monthly price, giving more prominence to contract lengths and costs after any discount offer has expired.
TalkTalk pre-empted the ASA’s rule change by announcing on Tuesday that it would become the first major broadband provider to start running ads with “all-in” pricing.TalkTalk pre-empted the ASA’s rule change by announcing on Tuesday that it would become the first major broadband provider to start running ads with “all-in” pricing.
Related: Broadband ad rules are 'complete and utter joke', says culture minister
The company has already rolled-out an all-in monthly price for those trialling its ultra fibre optic service in York.The company has already rolled-out an all-in monthly price for those trialling its ultra fibre optic service in York.
Trisita Harrison, TalkTalk’s consumer managing director, said that the luring consumers with cheap-looking, but complicated, offers is a “bad habit” that the industry has all been guilty of exploiting.Trisita Harrison, TalkTalk’s consumer managing director, said that the luring consumers with cheap-looking, but complicated, offers is a “bad habit” that the industry has all been guilty of exploiting.
“As long as line rental and broadband are priced separately, the temptation to advertise deals in this way will always be there,” said Harrison. “But it’s time for providers be honest about this – it’s a bad habit we have all been guilty of, it doesn’t serve customers well and it’s time it stopped.”“As long as line rental and broadband are priced separately, the temptation to advertise deals in this way will always be there,” said Harrison. “But it’s time for providers be honest about this – it’s a bad habit we have all been guilty of, it doesn’t serve customers well and it’s time it stopped.”
While the pricing clarity will be welcomed by consumer groups many critics including Virgin Media, which offers superfast broadband through its cable network, argue that the broadband advertising rules should be extended to cover claims about speed.While the pricing clarity will be welcomed by consumer groups many critics including Virgin Media, which offers superfast broadband through its cable network, argue that the broadband advertising rules should be extended to cover claims about speed.
Under the current ASA rules companies are allowed to advertise their top speeds even if they are only available to 10% of customers.Under the current ASA rules companies are allowed to advertise their top speeds even if they are only available to 10% of customers.
Last month, culture minister Ed Vaizey called the laxity of the rules “misleading” and a “complete and utter joke” and has called for them to be tightened.Last month, culture minister Ed Vaizey called the laxity of the rules “misleading” and a “complete and utter joke” and has called for them to be tightened.
“Our position on broadband speed claims in ads is based on extensive work undertaken in recent years, including a full public consultation on new guidance,” said a spokeswoman for the ASA. “We are an independent, evidence-based regulator and that underpins our regulation. We are, however, aware of concerns about this issue and we are carefully considering if there is further work we can do on the matter.”“Our position on broadband speed claims in ads is based on extensive work undertaken in recent years, including a full public consultation on new guidance,” said a spokeswoman for the ASA. “We are an independent, evidence-based regulator and that underpins our regulation. We are, however, aware of concerns about this issue and we are carefully considering if there is further work we can do on the matter.”
Separately, on Wednesday the ASA banned a series of three TV ads promoting BT’s Infinity broadband service for making misleading claims that it provides more responsive online gaming and smoother video than Virgin Media, and faster download speeds than Sky.Separately, on Wednesday the ASA banned a series of three TV ads promoting BT’s Infinity broadband service for making misleading claims that it provides more responsive online gaming and smoother video than Virgin Media, and faster download speeds than Sky.