New guidance has been issued by the government’s advertising regulator requiring internet service providers to substantiate claims that customers can browse the web at “maximum speeds.” The Committee of Advertising Practice (CAP), which works alongside the Advertising Standards Agency, published a Help Note outlining what ISPs must include when advertising top speeds.
Under the new guidance, broadband companies must supply clear, additional information alongside any “maximum speed” claim so consumers are not misled. Where appropriate, that supplemental information should explain if a sizable portion of subscribers experience speeds far below what the advertised figure implies.
These measures follow concerns about misleading speed claims. Previous warnings have targeted providers whose “up to” speeds significantly exceeded what many customers actually received. Research by Ofcom published in March highlighted the issue: average measured download speeds were often less than half of advertised “up to” speeds for some ISPs. Ofcom’s study also noted that although average broadband speed increased by 1 Mbit/s between May and December 2010, measured speeds remained only about 45 percent of the average advertised speed of 13.8 Mbit/s.
The CAP guidance will take effect in April 2012 and sets out the evidential standard ISPs must meet when advertising maximum speeds. Specifically, the rules require providers to demonstrate that a proportion of customers can achieve the claimed top speed. The guidance stipulates that at least 10 percent of customers should be able to reach that advertised speed, a threshold that has sparked criticism from consumer groups.
Critics argue that the 10 percent benchmark is too low to help customers make an informed choice. A spokesman for the consumer group Panel commented: “Consumers are still unable to make an informed choice of which ISP gives them the best internet speeds overall if only 10 percent of a provider’s customers get the maximum advertised speed.”
CAP’s chairman, James Best, defended the new guidance, saying it directly addresses consumer concerns by establishing a clear standard for speed and “unlimited” claims in advertising. He emphasized the importance of trust in advertising and suggested the guidance will improve the reliability of messages consumers encounter.
In addition to requirements around maximum speed claims, the guidance clarifies other areas of broadband and telephony advertising. Services should not be promoted as “unlimited” if providers impose charges, apply usage thresholds, or suspend service when customers exceed set limits. The guidance aims to ensure that terms like “unlimited” reflect the actual consumer experience rather than advertising rhetoric.
By combining clearer substantiation requirements for top-speed claims with stricter controls on “unlimited” descriptions, the CAP Help Note seeks to reduce misleading advertising in the broadband market. The regulator’s approach balances the need for advertisers to promote services with the need for transparent information that enables consumers to compare options and choose providers that meet their expectations.
Although the new rules represent a step toward greater transparency, the debate over whether the standards are stringent enough is likely to continue, with consumer groups pressing for higher thresholds and stronger enforcement to protect customers from misleading speed claims.