Consigning 'up to' to history
02 September 2010
I am really delighted to see the publication today of the research commissioned from ICM by Virgin Media into consumer attitudes to the way broadband speeds fall far short of what is advertised. For some time now the Panel has been very concerned by the claims made by broadband providers about the speeds that may be achieved through their networks.
In July 2009 Ofcom published research showing the very considerable gap between what was advertised and what was experienced by most consumers. On average the speeds experienced by consumers are now shown by Ofcom's July 2010 research to be less than half what is claimed - even worse that the July 2009 result. What is the point of quoting a theoretical 'up-to' maximum when in practice no-one actually achieves it?
Ofcom's introduction of a new voluntary code of practice commits providers to giving consumers more accurate information about the speed they are likely to achieve in practice. The ASA is also reviewing the way that broadband is advertised, and the Panel has had discussions with both to ensure the consumer perspective is taken into account.
The Panel Chair Anna Bradley also wrote to Ed Vaizey, the Culture Minister, highlighting this issue and seeking a more consumer-friendly solution along the lines of paying for what you get rather than paying for hollow promises which the providers know are unachievable.
It was obvious to the Panel that consumers were very unhappy about the gap between the promise and the reality, but the Virgin-ICM research gives us a solid research-based foundation for just how irritated and confused consumers actually are, which gives us a platform for applying further pressure. Although the publication is primarily commercially motivated, it has nevertheless helped to highlight a ridiculous situation.
We now have proof that consumers mistrust the claims made, are confused about what the claims mean, have inadequate information to make informed choices, and have a very low degree of confidence in the whole industry. This should be a wake-up call to all providers.
I would like to see the dreaded words 'Up to' to be consigned to history, and for more honest advertising to be used, indicating the typical speed that a consumer might experience on average. There may some difficulties in agreeing the definition of the words 'typical' and 'average', but providers now have a commercial imperative, as well as a moral one, to work through these difficulties, agree a new approach, and try to restore a degree of consumer confidence in the industry.