What is ASA’s Broadband Pricing Guidance?
In 2024, the
Advertising Standards Authority (ASA), in collaboration with the
Committee of Advertising Practice (CAP), released updated guidelines to ensure transparency and fairness in broadband and telecoms advertising.
These guidelines aim to protect consumers from misleading pricing claims and hidden charges, fostering a more trustworthy market environment.
How Should Pricing Information Be Presented in Broadband Ads?
The ASA’s guidance emphasises that all pricing information must be clear and accurate. This includes avoiding
exaggerated savings claims and ensuring that terms like “up to %” or “from £XX” accurately reflect the actual benefits consumers can expect.
The guidance aligns with the CTSI Guidance for Traders on Pricing Practices, requiring that price claims be substantiated and not misleading.
What Are Compulsory Charges?
Compulsory charges refer to any fees or costs consumers must pay in addition to the advertised price. The ASA mandates that these charges be clearly explained and presented near the main price in advertisements.
This includes fees for line rental, installation, and activation. For example, if a broadband package includes an upfront setup fee, this should be prominently displayed alongside the monthly cost to ensure consumers are fully informed.
How Should Price Comparisons Be Made in Ads?
The ASA’s guidance specifies that
price comparisons must be fair, accurate, and based on comparable offers. Advertisers should not compare promotional prices with a competitor’s usual prices unless the competitor also runs a comparable promotion.
For instance, if Sky advertises a promotional broadband package, it should not compare this price with BT’s standard rate without clarifying the context of the promotion. Moreover, any savings claims must be substantiated with verifiable data to avoid misleading consumers.
What Are the Rules for Reference Prices in Advertising?
Reference prices, such as crossed-out higher prices next to promotional offers, must represent a genuine established selling price. The ASA requires that these reference prices accurately reflect the actual cost consumers would typically pay.
Misleading reference prices that do not reflect the true cost of comparable services are prohibited. For example, if Sky advertises a broadband package at £39 with a crossed-out £52, the £52 must be the actual established price of the combined services, not an inflated figure.
How Are “Free” Claims Regulated in Broadband and Telecom Ads?
Claims of “free” services or products must be genuine and not involve any hidden costs. The ASA has strict guidelines to prevent the misuse of “free” claims. If a broadband package includes “free” installation, it must be clearly stated that this service has no additional fees. Any conditions or required purchases to obtain the “free” offer must also be transparently communicated to avoid misleading consumers.
What Are Mid-Contract Price Increases, and How Are They Regulated?
Mid-contract price increases occur when providers raise the prices of services during the term of a contract, often linked to inflation rates or rising business costs. The ASA’s 2024 guidelines require that any potential price increases be prominently disclosed in advertisements.
This ensures that consumers are fully aware of the possibility of price hikes before committing to a contract. Advertisements must clearly state how and when these increases will occur, avoiding the use of small print or obscure links to essential information.
What Actions Should Marketers Take to Comply with ASA Guidelines?
To comply with ASA guidelines, marketers in the broadband and telecom sectors should:
- Ensure Clarity: Present all pricing information, including compulsory charges and potential price increases, clearly and prominently in advertisements.
- Use Genuine Reference Prices: Only use reference prices that accurately reflect the established selling prices of comparable services.
- Substantiate Savings Claims: Provide verifiable data to support any savings or price comparison claims made in ads.
- Avoid Misleading “Free” Claims: Clearly disclose any conditions or additional costs associated with “free” offers.
- Follow Comparison Rules: Ensure that price comparisons are fair and accurate, and consider any promotional pricing from competitors.
What Is the Future of Broadband and Telecom Pricing Advertising?
With the ASA’s updated guidelines, the future of broadband and telecom advertising in 2024 and beyond is set to be more transparent and consumer-friendly.
Providers must adapt their marketing strategies to ensure compliance. This will lead to clearer communication of pricing structures and reduce the likelihood of
misleading advertisements. Consumers can expect to make more informed decisions, benefiting from honest, straightforward pricing information.
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