The Advertising Standards Authority (ASA) has announced a major overhaul to the way broadband providers can advertise their deals in a bid to stop households being misled over pricing.
From 31st October, broadband providers will have to include line rental charges when promoting products and be clear about up-front costs, post-discount costs and contract length.
The move follows research carried out by the ASA and Ofcom in January, which found shoppers struggled to make sense of broadband adverts.
Worryingly, more than 80% were unable to calculate the total cost of a broadband deal contract when presented with current advertising material put out by broadband providers.
Just 23% of participants could correctly identify the total cost per month after their first viewing, but 22% were still not able to identify this figure after a second viewing.
Broadband providers often advertise cheap or even free broadband while failing to spell out the true cost, excluding things like line rental, which can add more than £16 to a monthly bill.
Other elements common in current broadband ads like introductory offers, one-off costs and contract length add further confusion to shoppers trying to compare prices.
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New rules
The ASA says that, from 31st October, broadband ads will have to:
- Show all-inclusive up-front and monthly costs; no more separating out line rental
- Give greater prominence for the contract length and any post-discount pricing
- Give greater prominence for up-front costs
The new rules should help people understand the true cost of any deal they sign up to and avoid any nasty surprises.
ASA chief executive Guy Parker said: "We recognise the importance of broadband services to people's lives at work and at home. The findings of our research, and other factors we took into account, showed the way prices have been presented in broadband ads is likely to confuse and mislead customers.
"This new tougher approach has been developed to make sure consumers are not misled and get the information they need to make well-informed choices."
TalkTalk first to scrap line rental
TalkTalk has said it will scrap line rental charges in the autumn. It is the first major provider to make the move, but it’s expected more firms will follow suit to comply with the new rules.
From October, TalkTalk will only show a combined monthly price for its broadband deals, says consumer managing director Tristia Harrison.
"Showing rental and broadband prices separately is a bad habit we’ve all been guilty of, it doesn’t serve customers well and it’s time it stopped," she adds.
“We want to make things simpler and fairer for customers. People deserve to know they are getting value for money, and TalkTalk is going to ensure customers get the transparency they deserve. But TalkTalk can’t do this alone. Until other providers follow our lead, households across the UK risk being misled by seemingly good deals that all too often mask extra charges."
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