Australia’s ACCC tackles broadband advertising
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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.
Questions & Answers
Q.Why is the ACCC considering new rules for broadband advertising?
Why is the ACCC considering new rules for broadband advertising?
The ACCC is concerned that current broadband advertising lacks clear information about service performance. Vague claims and pictures are used instead of focusing on actual speed, making it hard for consumers to assess if a plan meets their needs.
Q.What is the primary issue consumers face with current broadband advertising?
What is the primary issue consumers face with current broadband advertising?
Consumers find it difficult to access accurate information about broadband speed and performance. Advertisements use vague claims like 'boost' or 'fast' instead of providing concrete details, hindering informed decision-making for their needs.
Q.What evidence supports the ACCC's concerns about broadband performance?
What evidence supports the ACCC's concerns about broadband performance?
Complaints about slow data speeds were the top internet-related issue reported to Australia’s Telecommunications Industry Ombudsman in Q1 2016. There were 2,159 such complaints, highlighting widespread consumer dissatisfaction with performance.
Q.What steps has the ACCC taken so far regarding broadband advertising?
What steps has the ACCC taken so far regarding broadband advertising?
The ACCC has published a discussion paper to gather views on how to improve information for consumers regarding broadband speed and performance. This is part of considering further steps needed in Australia due to market changes.
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