ASA Investigates Virgin Media Ads

The Advertising Standards Authority (ASA) has begun an investigation into Virgin Media following claims that its broadband advertisements are misleading customers.

The ‘Truth, Lies and Broadband’ campaign featuring ads in national newspapers, on radio and online, state that the cable company’s broadband is “delivered via a fibre optic cable – meaning that it is officially the fastest and the best-performing broadband available”.

However, Virgin Media’s broadband is delivered to individual homes via a standard coaxial copper cable as its fibre optic network stops at street level, whilst consumers are able to get faster broadband through BT’s ADSL network if they live near an exchange.

The ASA said that it had received 12 complaints from the public. Matt Wilson, a spokesman for the Advertising Standards Authority, said: “We have assessed the complaints and we believe that they are of sufficient merit to launch an investigation. We have written to Virgin Media asking it to provide evidence to substantiate its claims.”

Meanwhile, BSkyB’s marketing spend has shot up by more than 40% year on year to about £70 million for the first six months of the year, following its disagreement with Virgin Media over the carriage of the satellite broadcaster’s basic channel package (see Virgin Media And Sky: The Story So Far).

A report on MediaGuardian.co.uk quotes Nielsen Media Research figures which show that this is almost double the amount spent by Virgin Media, whose marketing spend was about £37 million over the same period.

Last week, Sky announced that it had added 90,000 subscribers to its pay-TV service in the three months to June 30, up 17% year on year, whilst its broadband customers also increased, by 259,000 to 716,000 (see Sky Adds 90,000 Subscribers).

The results of a survey published in May revealed that Virgin Media could lose as many as 400,000 subscribers as a result of the loss of Sky’s basic channel package (see Virgin Media ‘Underestimated’ Impact Of Sky Channel Carriage Dispute).

The ASA’s council will adjudicate on the case when it has received representations from Virgin Media.

ASA: 020 7580 5555 www.asa.org.uk Virgin Media: www.virginmedia.com