Telecoms providers must ensure transparency following ASA ruling and Ofcom guidance

The ASA recently ruled against Vodafone for misleading advertising claims in their TV, social media and website ads, following a complaint from British Telecommunications plc (BT). The ads suggested that customers could switch from BT to Vodafone and receive the “same broadband technology for less”. The TV claim in particular mentioned that “millions of BT customers across the UK are realising they can switch to Vodafone and get the same broadband for less”.

BT argued that Vodafone’s claim of providing the “same broadband” or “same broadband technology” as BT for less was misleading. BT also disputed the claim that “millions of BT customers across the UK are realising they can switch to Vodafone and get the same broadband for less”. BT argued that this statement was misleading and could not be substantiated, as they did not believe millions of their customers had switched or were considering switching to Vodafone.

Vodafone defended its campaign by stating among other things that the purpose was to educate consumers about the similarities in broadband services delivered using the same network technology. It argued that such services tend to perform similarly, which could help consumers save money.

However, the ASA agreed with BT stating that the advertisements were misleading and could not be substantiated. The ASA emphasised the importance of accurate and verified claims in advertising, especially in competitive markets like broadband services. Vodafone has been instructed to ensure that future advertisements do not imply equivalence in performance without robust evidence to support such claims.

Julie Campana, telecommunications risks and advisory specialist at Pinsent Masons, said: “This ASA ruling shows the need for telecommunications providers to choose their words carefully when making claims about equivalence of service. Advertising complaints, especially those between competitors, are quite prevalent and important in the telecoms industry. These complaints can result in rulings that uphold the complainants’ concerns, leading to regulators requesting the removal of non-compliant adverts.  These complaints and rulings help maintain a level playing field in the telecom industry, ensuring that companies compete fairly and transparently, ultimately benefiting consumers.”

In a parallel move, Ofcom has introduced new guidelines to provide clearer information to broadband customers. These guidelines require broadband providers to clearly state the underlying technology of their services in a bid to eliminate confusion caused by the sometimes-inconsistent use of terms like “fibre” in the industry.

Under the new rules, providers must specify whether their network is “full-fibre”, “part fibre”, “copper” or “cable”. This information must be presented at the point of sale as well as in contract summaries. Firms must ensure that consumers are fully informed before making a purchase. The term “fibre” can no longer be used on its own.

Ofcom’s initiative is part of a broader effort to enhance transparency and consumer protection across the telecommunications sector. By providing clear and unambiguous information, the aim is to empower consumers to make informed decisions about their broadband services.

“The ASA’s ruling, and Ofcom’s guidelines, are examples of the regulatory scrutiny telecommunications companies face. As the market continues to evolve, adherence to these standards will be crucial for maintaining consumer trust and avoiding regulatory penalties,” said Campana.