Australia’s ACCC tackles broadband advertising

Australian competition regulator ACCC has hinted it could introduce rules requiring ISPs to provide accurate information to customers about broadband speeds.

The regulator has published a discussion paper seeking views on how consumer information about the speed and performance of broadband plans can be improved.

ACCC chairman Rod Sims said the agency is concerned about the lack of clear information about performance of broadband services provided in advertising and related material.

“At the moment, it is difficult for consumers to access accurate information as broadband advertising is not focusing upon speed and performance,” he said.

“Consumers are being presented with little information or vague claims like ‘boost’ and ‘fast’, or just pictures in advertising of athletes or animals. Consumers need accurate information about broadband speed and performance so that they can understand if what they are being offered will actually meet their needs.”

He noted that complaints about slow data speeds were the top internet-related complaint issue among reports to Australia’s Telecommunications Industry Ombudsman (TIO) in the first quarter of 2016, accounting for 2,159 reported issues.

Given changes in the market and consumer expectations related to broadband performance, “the ACCC believes that it is timely to consider what further steps need to be taken in Australia,” Sims said.