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Broadband advert rule changes come into effect | Broadband advert rule changes come into effect |
(about 9 hours later) | |
New rules forcing broadband firms to be clearer in adverts on the costs of their contracts have come into effect. | New rules forcing broadband firms to be clearer in adverts on the costs of their contracts have come into effect. |
Broadband suppliers will now have to show upfront and monthly costs, without separating out line rental prices, according to the changes brought in by the Advertising Standards Authority. | Broadband suppliers will now have to show upfront and monthly costs, without separating out line rental prices, according to the changes brought in by the Advertising Standards Authority. |
The rules were originally due to be implemented in May, but firms asked for more time to comply with the changes. | The rules were originally due to be implemented in May, but firms asked for more time to comply with the changes. |
The ASA said customers were now less likely to be misled by adverts. | The ASA said customers were now less likely to be misled by adverts. |
"The effect should be a real positive difference in how consumers understand and engage with ads for broadband services," said ASA chief executive Guy Parker. | "The effect should be a real positive difference in how consumers understand and engage with ads for broadband services," said ASA chief executive Guy Parker. |
The move comes after research by the ASA, conducted with regulator Ofcom last year, found that most users could not correctly calculate bills based on the information given in a selection of broadband ads. | The move comes after research by the ASA, conducted with regulator Ofcom last year, found that most users could not correctly calculate bills based on the information given in a selection of broadband ads. |
People were "likely to be confused and misled" by price claims in the adverts, the ASA found. | People were "likely to be confused and misled" by price claims in the adverts, the ASA found. |
To comply with the new rules, broadband providers will now have to: | To comply with the new rules, broadband providers will now have to: |
Digital and Culture Minister Matt Hancock welcomed the ASA's move. | |
"Making broadband providers show all-inclusive, upfront prices in their advertisements means consumers will be much better placed to make an informed choice when deciding on a service," he added. | "Making broadband providers show all-inclusive, upfront prices in their advertisements means consumers will be much better placed to make an informed choice when deciding on a service," he added. |
Broadband speeds | |
Technology expert Chris Green told BBC Radio 5 live: "It's going to level the playing field, and make pricing more transparent. | |
"But mostly it's about providing a lot more clarity to customers." | |
However, there will be no change to the rules on the way providers are allowed to advertise the broadband speeds on offer. | |
"If a broadband company advertises a particular speed, actually only up to 10% of people need to get that speed, which a lot of people would say is quite misleading," said Steve Nowottny from Moneysavingexpert. | |
One reason for that rule is that different customers will experience different speeds, according to how far they live from the telephone exchange. |