Citizens Advice calls for four broadband adverts to be banned
Complaints about four adverts for broadband services from BT, Virgin, Sky and Talk Talk have been made to the Advertising Standards Authority by Citizens Advice.
The national charity and consumer body has raised concerns that the adverts are not clearly presenting the actual cost of broadband packages.
In a report sent to the ASA today, Citizens Advice complains that promises of free or cut price broadband deals for a set period of time are misleading consumers into contracts that turn out to be more costly.
The adverts appear to offer deals ranging from free to £5 a month, but the actual average price per month during the contracts ranged from £19 to £29. One contract, advertised only as “Free for 6 months”, would have cost over £500 over 18 months once installation fees and line rental were factored in.
The report also highlights how the adverts can make it difficult for people to compare prices between companies and establish which deal is best for them.
Sixteen potential breaches of advertising codes were reported across the four adverts.
Citizens Advice is calling on the ASA to undertake a wider review of advertising practices in the broadband sector to assess whether tighter guidelines are needed.
Gillian Guy, Chief Executive of Citizens Advice, said:
“Attractive offers can lead to bigger broadband costs. People are being lured into more costly contracts because additional charges are hidden in the small print. Often it is impossible for the deals to be free or offered at the cut price because costs for other elements like line rental are yet to be added.
“Consumers need to be presented with the total cost to be able to make meaningful comparisons. The industry needs to improve the way it advertises deals so consumers are clear about what they are paying for.
“We hope the ASA will take swift action on these adverts. The regulator also needs to look into reviewing the advertising practices of the broadband industry to stop similar adverts being published in the future.”
The table below outlines each advert, the complaint and the part of the code the complaint relates to.
| Advert | Complaint raised | Part of code believed to be breached |
|---|---|---|
| Broadband from BT is free for six months. This offer is in very large print. Underneath this price in far smaller print is the statement: “Then £10 monthly. BT Line £16.99 monthly from month 1. New packages without calls. | It is believed the advert emphasises the free element of the package in a way that detracts from and obscures the true total cost to the consumer. It is believed the linked requirement and cost of line rental is not prominently displayed and can be overlooked. | 3.1, 3.3, 3.17 of CAP CAP rule 3.21 |
| Broadband from Virgin would cost £5 a month for 6 months but would also require Virgin phone line rental of £16.99. After six months the cost of the broadband element would rise to £17.50 with monthly line rental of £16.99. The length of the contract is 18 months. | It is believed the advert emphasises the reduced cost element in a way that detracts from and obscures the true total cost to the consumer. It is believed the linked requirement and cost of line rental is not prominently displayed and can be overlooked. | CAP rules 3.1, 3.3 and 3.17 CAP rule 3.21 |
| 6 months free Sky Fibre unlimited broadband. A monthly line rental of £16.40 is payable from month 1 and a broadband fee of £20 a month is payable after 6 months. The minimum contract is 18 months. | It is believed the advert emphasises the free and reduced cost element in a way that detracts from and obscures the true total cost to the consumer. It is believed the linked requirement and cost of line rental is not prominently displayed and can be overlooked. | CAP rules 3.1, 3.3 and 3.17 CAP rule 3.21 |
| Internet based advert TalkTalk offered unlimited broadband for £1.75 a month for 12 months plus £16.70 monthly line rental through its web site. This makes the true monthly cost £18.45. | It is believed the advert emphasises the reduced cost element in a way that detracts from and obscures the true total cost to the consumer. It is believed the linked requirement and cost of line rental is not prominently displayed and can be overlooked. | CAP rules 3.1, 3.3 and 3.17 CAP rule 3.21 |
Earlier this year Citizens Advice reported seven payday loan adverts to the ASA, five have since been banned.
-ends-
Notes to editors:
- The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
- The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
- To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
- You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
- Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014 service statistics see our quarterly publication Advice trends
- Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.