Telecommunications Marketing: CAP to Review Performance and Usage claims

24 June 2010

CAP and BCAP have undertaken to launch a review of broadband speed and ‘unlimited’ usage claims in telecoms marketing in response to concerns from stakeholders, including consumers. The issue of whether consumers can actually achieve advertised speeds and levels of ‘unlimited’ usage have been the cause of consumer concern for several years. ASA policy has developed over that time to ensure the claims do not mislead, but, in an increasingly dynamic market, there is now a need for a more in-depth look at how best to protect consumers and ensure a level playing field between advertisers.

Difficult Issues

The claims are common in ads for most telecoms services, ranging from cutting edge broadband to more traditional calls packages. But a variety of technological limitations affecting the performance of different services means ads must communicate the benefits of services to consumers in a balanced way. Of particular concern has been the performance variations affecting ADSL broadband services and the impact of fair usage policies on ‘unlimited’ mobile services.

Changing Marketplace

CAP and BCAP consider the time is now right for a broader review of these issues encompassing all platforms and types of service. Technological developments in telecoms markets and the growth of new platforms, particularly mobile services, and the on-going roll out of super-fast broadband products, has reemphasised the need for consumers to have adequate information to make choices between different types of telecoms service.

Responsive Regulation

CAP and BCAP will be working with stakeholders with the aim of producing guidance to assist advertisers in their compliance with the Codes. The review will focus on the information necessary in ads to insure that claims properly alert consumers to potential factors that might result in them not being able to achieve the performance or usage suggested by a claim.

Advertisers and media owners should be aware that the ASA will continue to enforce its present policies on broadband speed and unlimited claims until such time as the review is concluded.

• Numerical headline speeds for all services should be qualified with the term ‘up to’. Ads for ADSL services should also make clear that quoted speeds are dependent upon several factors including distance from the telephone exchange. 
• Unlimited claims are acceptable when a fair usage policy exists only if: a) the existence of a fair usage policy is stated in the ad and b) the fair-use policy can be shown to exclude only atypical users.

For advice about current advertising please visit the Copy Advice website or contact the Copy Advice team at advice@cap.org.uk.