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The Commerce Commission is addressing concerns about broadband marketing conduct by opening consultations on new guidelines to help consumers compare and choose services.
The guidelines are being updated following a 2021 review to address concerns about marketing conduct and reduce consumer confusion, particularly during the transition away from copper.
Telecommunications commissioner Tristan Gilbertson said the review showed a positive response from industry and an improvement in broadband marketing conduct across the board – particularly for Kiwis coming off copper, where complaints have dropped by 36 per cent.
“We’re pleased to see that, off the back of this industry engagement, Kiwis are now getting more of the information they need to make informed purchasing decisions,” he said.
“In saying that, our review also identified opportunities for improvement in some areas to promote even better comparison and choice.”
The revised guidelines focus on clarifying broadband speed disclosures and standardising the grounds for an “exit right” to prevent lock-in issues.
“Providers have moved away from the unhelpful and confusing practice of using ‘up to’ theoretical maximum speeds and are instead using independently verified speeds from the commission’s ‘Measuring Broadband New Zealand’ programme which tell consumers what speeds they’re likely to get in real life,” Gilbertson said.
“This feeds into a key requirement of the original guidelines that providers should offer consumers an ‘exit right’ if real world performance is materially different to what was advertised – and we’re pleased so see most providers now offer this.”
However, Gilbertson said, the materiality test varied between providers and the commission wanted it standardised so all consumers were treated on an equal basis and could more consistently exit without penalty.
The commission’s review also found some providers show MBNZ speeds for fibre broadband, but not for wireless broadband, creating a significant information gap.
“Speeds are very useful to consumers when comparing plans and identifying what’s right for them – so we want to make sure that peak time download and upload speeds are always provided whenever available from MBNZ,” Gilbertson said.
The commission also wanted consumers to have access to at least 12 months usage and spend information, as with mobile services, so they could determine whether they’re on the best plan and technology for their usage.
“Some providers are already doing this and we’d like to see it become standard practice across the board,” Gilbertson said.
Gilbertson said the Telecommunications Forum is expected to make any changes to industry codes within six months of the revised guidelines being finalised.
Consultation is open until 6 November 2024.