ASA calls for clarity on broadband speed claims

The Advertising Standards Authority (ASA) has called for action to address how internet service providers (ISPs) advertise broadband speeds, after research suggested consumers have a poor understanding of average speed, range speed and minimum speed claims.

Earlier in 2016, the ASA cracked down on misleading costs in advertising, meaning ISPs had to become more upfront about how they present the pricing structure of their various broadband packages.

Now, the ASA has turned its attention to whether or not the regulatory standards it enforces, which are set by the Committees of Advertising Practice (CAP), are fit for purpose in protecting the general public from misleading claims about broadband speed.

With support from researchers GfK, the ASA conducted in-depth studies of consumers around the UK. It found that while speed was an important factor in how consumers choose between ISPs, levels of knowledge and understanding varied and were low overall, with many people not knowing what speeds they need to carry out various online tasks.

While most people understood that the higher the speed quoted in the advert, the higher the speed of the service, many remained unclear on what that meant in practice, what speed they would actually achieve and what packages would be most suitable for them. For example, parents of teenaged children streaming video to multiple devices will need a faster connection than a pensioner who only uses email.

Despite this uncertainty, the research revealed that the majority of consumers believed they were likely to receive a speed at or close to the headline speed claim, when in most cases that was extremely unlikely to be the case due to a range of factors – for example, distance from the fibre cabinet.

According to comparison site thinkbroadband.com, fibre-to-the-cabinet (FTTC) services that are usually advertised as providing speeds of up to 38Mbps tend to provide an average of 28Mbps, and the disparity on older asymmetric digital subscriber line (ADSL) services is even greater.

The ASA’s chief executive Guy Parker said these findings underpinned the agency’s call for changes in how broadband speed claims are advertised to ensure people were not misled, and the decision by CAP, announced 17 November 2016, to review its guidance to advertisers.

“Making sure ads don’t mislead is at the heart of what we do. We’ve taken action this year to tackle confusing broadband pricing, to the benefit of consumers.  Our research indicates that speed claims in ads contribute to consumers’ expectations of the broadband speeds they’ll receive, but their expectations are not being met. That needs to change,” said Parker.

CAP director Shahriar Coupal added: “The research provides good insights into consumers’ understanding of broadband speed claims, but it doesn’t identify an obvious alternative way to communicate speeds that would be suitable to everybody’s needs. It also tells us that consumers believe that advertising can only do so much, which underpins the importance of detailed broadband speed information being provided elsewhere.

“CAP will take these findings and other information into account in its review of the guidance to ensure that broadband providers aren’t over-promising on their speed claims,” he said.