The UK’s Advertising Standards Authority (ASA) recently took decisive action against major telecommunications companies for misleading advertising regarding broadband pricing. This move highlights the need for transparency in presenting information about potential mid-contract price increases. Companies such as BT and Virgin Media have been instructed to revise their advertising to meet the ASA’s stricter standards.
This enforcement follows new guidelines that went into effect after a six-month grace period. The ASA made clear that telecom companies must prominently display any price changes in their promotions, stated in precise financial terms, to avoid misleading consumers.
The investigation revealed that several ads downplayed these price increases by displaying them in smaller text or providing insufficient information. These practices fall short of compliance with the guidance that mandates clear communication of future price hikes.
The crackdown results from increasing scrutiny over “greedflation” in the telecom sector. Ofcom, the UK’s communications regulator, pressured the industry by prohibiting price increases without forewarning customers. Starting next year, percentage-based price hikes will be entirely prohibited in new contracts.
Price increases during contracts have been prevalent in telecom for years, exacerbated by inflation surges like the one seen in 2022, which hit a 41-year high. Consumers have faced rising costs while industries like gas and electricity offer better protection measures.
