If you’ve ever tried getting a quote from a broadband provider, you’ve probably found it to be a difficult experience. ISPs don’t always make their pricing marketing clear, or easy to understand.
Often, potential customers are bombarded with confusing broadband deals that involve limited-time-only connection fees (that never existed originally), ‘x’ amount of broadband for a cut price (which is later tripled), and bundled extras such as streaming services that you never really wanted until you were offered them. As a result, you never really know which broadband provider offers the best value for money for their service.
Thankfully, the Advertising Standards Agency (ASA) has been taking note. After lengthy research conducted with Ofcom in January, the ASA has found the current approach to presenting pricing in fixed broadband ads is likely to confuse and mislead consumers about the cost of broadband services and has decided to step in and do something about it. "[Our] research tested consumers’ likely understanding of the presentation of pricing offers in current broadband ads including line rental," the ASA said. "Participants found it difficult to calculate the true cost of a contract when presented with these ads where the different elements – broadband, introductory offer, line rental, contract length and one-off costs – were presented separately and some elements given greater prominence than others."
Only 23 per cent of participants were able to correctly identify the total cost per month after the first viewing of the ad. 22 per cent of participants were still not able to identify correctly the total cost per month even after a second viewing of the ad. And finally, a whopping 81 per cent of participants were unable to calculate correctly the total cost of a broadband contract when asked to do so.
To make sure the broadband companies don’t resort to their old ways again, the ASA has outlined a set of rules that future broadband ads should include in their price claims. These are:
- 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 ASA's new rules mean that from 31 October 2016, any ISPs still advertising in this way will be breaking advertising rules. So what did the broadband providers have to say about the ruling?
Sky said it is going to review the ASA’s statement on broadband advertising and work with the ASA to "ensure our advertising continues to adhere to all industry guidelines."
BT is in favour of the ASA’s decision to make things clearer for customers. A spokesperson told WIRED: "[We will] adopt the new rules they have outlined and will follow the current rules on advertising and always try to ensure our customers know exactly what they’re getting for their money before they buy from us. Our broadband pricing is clear and we give our customers personalised speed estimates before they buy."
EE said also said it will embrace the move to help provide broadband pricing clarity and consistency "for all consumers across the UK".
As for TalkTalk, a spokeswoman told WIRED that the ruling will see that the firm introduces an 'all-in pricing' in the Autumn, putting an end to the current system of pricing, which involves separating the price of line rental and broadband. "We believe that this will make broadband pricing simpler and more transparent, and will make things fairer to customers," she said. "TalkTalk is the first major broadband provider to end the practice of separate pricing, and we believe that this practice should become an industry norm, in order to remove unnecessary complexity for the customer." WIRED contacted Virgin Media but at the time of publication had not received a response.
This article was originally published by WIRED UK
