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The Department for Culture Media and Sport (DCMS) has announced it is to investigate whether home broadband providers are hiding the true cost of their services by way of confusing discounts or line rental charges.

According to ISPreview, the government is confident it can save families across the country as much as £470 a year on their utility bills by addressing abuses in the market and cutting red tape to improve existing services.

The report claims that transparent pricing is a key part of ensuring fairness in the market.

It reads: "Customers rely on adverts to choose the right broadband product for them. They should not be misled.

"The government wants to ensure consumers understand the full cost of a contract and are not misled by teaser rates.

"For example, government analysis of research by Citizens Advice shows that total costs can be £240 a year higher than the headline introductory rate for fixed broadband."

It added that the Advertising Standards Authority (ASA) is already looking at whether teaser rates on broadband deals are misleading customers.

The report continued: "The ASA will publish research into this area in January 2016 and will publish proposals later in the spring."

Source

ISPreview

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