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BT and Sky's NOW TV service have both confirmed they have switched to all-in pricing.

The Advertising Standards Authority (ASA) is introducing new guidelines on how product prices are promoted as it believes separating broadband from other expenses is confusing to customers.

Vodafone, TalkTalk, EE and the Post Office have already adopted all-in pricing in order to comply with the new rules, and BT is now following suit before they come into place on October 31st.

Sky is also making changes to its NOW TV service, with the cost of no-contract TV, broadband and line rental bundles being combined into a single price.

The provider is also strengthening its Combo introductory packages, with Fab Fibre and the latest TV now being offered at the same price as standard broadband at £29.99 a month.

The ASA is pushing for all-in pricing after a joint study with Ofcom revealed consumers often struggle to calculate how much a contract actually costs when broadband and line rental charges are provided separately.

Just 23 per cent of respondents were able to correctly identify the total monthly cost after the initial viewing of an advert.

Meanwhile, 22 per cent were still unable to work out the total monthly cost even after viewing an ad for a second time.

Under the new system, price claims must show all-inclusive up-front and monthly costs, with ads also giving greater prominence to the contract length and post-discount pricing.

Guy Parker, Chief Executive of the ASA, commented: "This new tougher approach has been developed to make sure consumers are not misled and get the information they need to make well-informed choices."

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