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ASA Hot Topic Broadband Whether it’s through a home computer, smartphone or TV, having instant access to and use of the internet has become a part of our daily lives. As demand for the internet has grown, so competition amongst providers has led to advertisers promising users a faster and unrestricted service. The online revolution led to the creation of broadband which has enabled faster connections to the internet and made activities such as downloading pictures or songs less time consuming. In short, broadband has become synonymous with speed. A need for speed Many of us will have seen advertisements for broadband claiming an “up to” speed, often measured by megabits per second. But the actual service some consumers experience is often different. There are many reasons why you might receive a different speed at home to the advertised speed; for instance, the distance between your home and the local exchange, heavy internet traffic at peak times, any traffic management policies that the provider imposes and even the type of computer you use. This means that speed can vary – and not just from one geographical area to another. Neighbours can experience different speeds and even within a single household it can vary depending on the time of day you’re going online. In 2010, following consumer concerns about the headline claims in broadband ads not reflecting the actual speed of the service they received, the ASA asked the Advertising Code writing bodies (CAP and BCAP) to review broadband speed claims in advertisements as part of a wider look at advertising in this sector. They published a Help Note which came into effect in April 2012. It is designed to give advertisers greater clarity on how to advertise their services and, importantly, protect consumers from being misled. The Help Note states: • Maximum speed claims should be based on the actual experience of users; advertisers should be able to demonstrate that the speeds in their advertising can be achieved by at least 10% of customers • Factors that are likely to cause some customers to receive speeds significantly below the claimed maximum speed should be clearly stated For more information: www.asa.org.uk 2 ASA Hot Topic: Broadband • Qualifications must be prominent and make clear any factors likely to affect consumers’ ability to achieve an advertised speed • Where a maximum speed experienced by a significant proportion of customers is so much lower than the advertised maximum that it impacts on their general online activities, advertisers must include an explicit disclaimer that clearly highlights the likelihood of consumers not receiving an adequate service. Unlimited When a business promises in its ad that you can enjoy “unlimited” use of its product or service then it is naturally disappointing if you discover that you can’t. It can also be an unpleasant surprise if you are then penalised for going over a limit you didn’t realise existed. In these instances, consumers, understandably, are left feeling frustrated and misled. Ad claims for “unlimited” broadband have prompted complaints to the ASA when providerimposed limitations have restricted a service. These restrictions can come in the form of an additional charge or suspension of service, and are most often the result of a user exceeding a “fair usage” or “traffic management” policy. But, if something is truly “unlimited” how can any restrictions exist? Ultimately it comes down to what a “legitimate” user is. The ASA accepts that businesses have the right to restrict those users who are using an “unlimited” broadband service in an “illegitimate” way, for example using a consumer service for business purposes, downloading copyrighted content without permission or sending spam emails or texts. We don’t think, however, that it’s fair for restrictions to be imposed on legitimate users of “unlimited” broadband. The Help Note addresses this by making clear when and how this type of claim is acceptable. The Help Note states: • “Unlimited” claims are likely to be acceptable for telecommunications services that are subject to provider-imposed limitations if: • They do not restrict or limit a service in a manner contrary to the average consumer’s expectations of an “unlimited” service • The legitimate user incurs no additional charge or suspension of service as a consequence of exceeding any usage threshold associated with a fair usage or traffic management policy • Claims that have the same or similar meaning, for instance, “Limitless” or “All you can use”, will be assessed by the ASA on a case-by-case basis. For more information: www.asa.org.uk 3 ASA Hot Topic: Broadband What does it all mean for consumers? The new guidance has given the ASA greater scope to clamp down on ads making speed or usage claims for broadband that potentially mislead consumers. For instance, we’ve taken action against various ads by broadband providers, serving to make clear how the guidance will be interpreted and applied. Our rulings also help maintain a level playing field amongst competitors. Ads should not now contain over-exaggerated or unproven speed claims. Realistic claims about the likely speed consumers will achieve and clear information, such as qualifications about factors that might impact on their ability to achieve an advertised speed, must be prominently displayed in the ad. While those ads claiming that a broadband service is unlimited can only do so if that is what consumers actually experience. If a provider imposes restrictions that impact on a legitimate user then that is unfair and the ASA will prevent them from claiming their service is unlimited. Overall, we should now have greater confidence that the ad claims we see and hear for broadband speed and usage are truthful. Anyone who feels a broadband ad is misleading should get in touch with us and we’ll look into the issue for you. Knowing the limits No ad can possibly tell you all you need to know about a service and the same applies to broadband ads. Plus, we generally expect to do a bit more research about a product that we are thinking of buying. That said, the information ads provide can influence our purchasing decisions. We often rely on them to get us started in our search for new service providers and to help us to differentiate one service from another, and therefore we need to be able to trust them. The guidance works alongside Ofcom’s Code which requires broadband providers to tell their customers what speed they can expect to achieve when they sign up to a particular service. We are committed to ensuring that ads do not mislead, particularly in such a complex area as broadband services, and will assess any complaints against the new guidance to ensure consumers get a fair deal. Key rulings Virgin Media Ltd We banned Virgin from claiming “Unlimited downloads. Download and browse as much as you like with no caps and no hidden charges” because there were restrictions in place that affected some customers’ ability to download data and a restriction reducing some users' download speeds by 50% was likely to contradict the claims that the service was "unlimited". British Telecommunications plc BT could not prove claims that its broadband service, would let consumers “Share photos and videos at unbeatable speeds”… “… do more online at speeds four times faster than Sky's typical broadband”… and “… download an entire album, in seconds.” For more information: www.asa.org.uk 4 ASA Hot Topic: Broadband Everything Everywhere Ltd t/a T-Mobile UK T-Mobile’s claims for mobile phone tariffs stated "... Unlimited internet. Unlimited texts. 2000 minutes to any network.” We told T-Mobile not to claim that their service was "unlimited" if they imposed restrictions that were more than moderate. Further reading Help Note on the use of speed claims in broadband advertising Help Note on the ‘Use of “unlimited” claims in telecommunications advertising’ Contact us Email: [email protected] Follow us on Twitter: @ASA_UK The Advertising Standards Authority (ASA) works to maintain the highest standards in advertising by taking action to prevent ads from being misleading, harmful or offensive. Visit www.asa.org.uk for more information about our activities, to view Foradvertising more information: the Codes or to www.asa.org.uk access our database of adjudications.