British communications regulator Ofcom has introduced new Code of Practice for Internet Service Providers (ISPs), under which customers buying broadband packages should be told how fast their new service will be, before they sign a contract.
The Code of Practice has come into effect on 1 March 2019.
The new code is part of Ofcom’s work to promote Fairness for Customers, which ensures people get a fair deal from their providers.
Under the code, broadband firms will always be required to give customers a minimum guaranteed speed at the point of sale.
In case the broadband speed of a customer drops below the promised level, companies will have one month to improve performance before allowing the customer exit, penalty-free.
The right to exit is also applicable to landline and TV packages bought at the same time as broadband.
ISPs will also be required to tell customers about what speeds to expect during peak times.
Part of Ofcom’s Fairness for Customers work, the new protections apply whether people are switching to a new provider or changing their current package.
All major broadband firms – BT, EE, Plusnet, Sky, TalkTalk and Virgin Media – which together serve around 95% of home broadband customers, have signed up to the new code.
Ofcom consumer group director Lindsey Fussell said: “When you sign a contract, you should be treated fairly and know exactly what you’re getting.
“These protections mean broadband shoppers can buy with confidence. Before they sign up, customers will be told their minimum internet speed.
“And if companies break that promise, they’ll have to sort it out quickly, or let the customer walk away.”
According to Ofcom’s latest data, only three in 20 broadband customers contacted their provider proactively and renegotiated their deal in 2018.
Furthermore, people with a basic, copper broadband connection have less than a one-in-five chance of being able to stream Netflix in ultra-high definition.
Ofcom said that the initiative is aimed at helping people who want to boost their broadband, switch provider or just renegotiate what they pay.