Advertising bodies issue guidance on acceptable broadband claims in ads

The bodies which write the UK's advertising rules have published new guidance which will tighten restrictions on the claims ISPs make about broadband services in adverts. The rules will come into force next April.

Earlier this year telecoms regulator Ofcom reported that the average broadband speed tested was less than 50% of the average advertised speed.

The Committee of Advertising Practice (CAP) and Broadcast Committee of Advertising Practice (BCAP) said that telecoms firms must be able to demonstrate that at least 10% of "the relevant customer base" could achieve the speeds of broadband internet connection that they advertise.

The Committees are responsible for writing the UK's rules on advertising. The CAP Code sets out rules for print, poster and online advertising, whilst the BCAP Code sets the rules for ads broadcast on television and radio. Both Codes prohibit ads that are misleading or make unsubstantiated claims.

"CAP and BCAP consider that maximum speed claims should be based on the actual experience of users and therefore marketers should be able to demonstrate that the speeds claimed in their advertising can be achieved by a reasonable proportion of the ISP’s customers," the Committees said in their new guide (Click through for 12-page / 38KB PDF).

"Where advertisers make a numerical speed claim that is likely to be understood by consumers as the maximum speed of their service, they should be able to demonstrate that the speed is achievable for at least 10% of the relevant customer base. This applies to a claim wherever it appears in the marketing communication and if the claim is a part of the name of the service.

Marketers may, however, choose to round their maximum speed claims down to a figure that is more convenient for marketing purposes," the guide said.

The Advertising Standards Authority (ASA), which oversees compliance with the Codes, will consider the new guidance when assessing claims made in adverts, according to a spokesperson for the watchdog. The guide comes into force on 1 April 2012.

The guide also said that ISPs must use the words "up to" to describe the maximum speeds of broadband services if some customers will not experience those speeds. The prefix is not required for ad claims on the average speed of a service, it said.

Marketing communication must also carry information about any "significant factors affecting a service" in order to avoid making claims that may be misleading, the guide said.

"Evidence of the significance of a given factor will be considered on a case-by-case basis in accordance with consumers’ likely expectations of the service," the Committees' guide said.

"The wording of a qualification must make clear, in terms easily understood by consumers, the likely effect of the relevant factor on consumers’ ability to achieve an advertised speed. In particular, marketers should avoid technical terms unless they are widely understood by consumers or are explained clearly within the marketing communication. Qualifications should be prominent, appearing in the body copy of non-broadcast marketing communications and the equivalent for claims appearing in broadcast advertisements," it said.

Adverts for broadband services may have to carry further qualifying information if they make claims about online activities, including streaming of content, which "a significant proportion of an ISP's customer base" will not be able to undertake but which the advert leads them to "reasonably expect to undertake", the guide said.

"Where this happens, marketers must include further qualifying information that bears out, in terms easily understood by consumers, the likelihood of the service not being able to meet the expectations of that element of the customer base," the guide said.

The advertising Committees also issued guidance over the appropriate use of the term "unlimited" when describing access to an internet service provided by an ISP.

The Committees' guide said that marketing communications carrying 'unlimited' claims are likely not to mislead the average consumer "if they do not restrict or limit a service in a manner contrary to the average consumer’s expectations of an 'unlimited' service".

"'Unlimited' claims are likely to be acceptable provided that the legitimate user incurs no additional charge or suspension of service as a consequence of exceeding any usage threshold associated with [a fair usage policy], traffic management policy or the like; and provider-imposed limitations that affect the speed or usage of the service are moderate only and are clearly explained in the marketing communication," the guide (Click through for 6-page / 27KB PDF) said.

"Provided that they meet these criteria, limitations such as those that fall into the following categories are likely to be acceptable for services advertised as 'unlimited': subscriber-based and application-based traffic management policies, network-wide traffic management policies, and traffic management mechanisms that are under the auspices of [a fair usage policy]," it said.

The new guidance documents were issued following a public consultation, and the chairman of CAP said it they help build consumer trust in advertising.

"This new guidance directly responds to consumer concerns by setting an appropriately high bar for advertisers who want to make speed and ‘unlimited’ claims in ads," James Best, CAP chairman, said in a statement.

"Advertising is only effective if consumers trust the messages they see and hear.  This guidance will help deliver that," Best said.