UK ISPs told adverts must feature clearer pricing

The Advertising Standards Authority (ASA) has teamed up with the communications watchdog Ofcom to censure broadband providers over the way they advertise their services.

New advertising rules will come into force in May after the ASA’s research found that 81% of consumers were confused by broadband deals and did not know how much they would have to pay. “Our research with the ASA shows that many people are confused by complicated adverts and offers, so we welcome the ASA’s plans to simplify broadband advertising”, she said.

All-inclusive up-front and monthly costs; no more separating out of line rental. Beyond adverts, ISPs provide clear information if consumers engage more closely with them, for example by going to their website, visiting a shop, working with comparison and consumer websites or by calling the providers.

The following reasons were cited for the confusion among would-be broadband subscribers: unequal prominence on pricing; ambiguity; lack of clarity; and partial omission of the information consumers needed to make an informed decision about which ISP to sign up to, based on costs.

64 percent of those who couldn’t calculate the total cost per month, thought the headline price for the broadband element of a package constituted the total cost per month and that line rental costs did not apply.

Broadband adverts are confusing and misleading consumers, a report from industry watchdogs has found. Providers are not obliged to follow the ASA’s suggestions, but not doing so could mean they break the United Kingdom advertising code.

In response, the ASA will bring in new recommendations by the end of May which it says will prevent customers from being misled about pricing.

It will also recommend greater prominence for the contract length, post-discount pricing and up-front costs.

More than a fifth (22%) were still unable to identify the total monthly cost after seeing the ad a second time.

For the biggest providers the complexity is not too bad, but once you reach the likes of AAISP with their many options or others that allow any WLR voice line rental to be running alongside their broadband service things become more interesting.

Sharon White, Ofcom Chief Executive, said: “Ofcom wants to see clear and accurate broadband prices for consumers”.

The charity’s CEO Gillian Guy said: “Misleading broadband adverts are hiding the true cost of a contract”.

“A broadband market that works for consumers should be competing on the overall cost of the available deals rather than on how hard they can make it for people to work this out”.