Ofcom has released a new code of practice which will give customers more information what broadband speeds they will get in reality, as opposed to what is publicised.
ISPs covering over 95 per cent of customers have signed up to the voluntary code, which will reduce the potential for customers to be misled over the speed that they get from their broadband service.
The code requires ISPs to provide customers at the point of sale an accurate estimate of the maximum speed their lines can support. They must explain clearly how technical factors could slow down speeds and give help and advice to how users can improve their speeds.
They must also offer an alternative package without any penalties if the actual speed is lower than the original estimate, and with fair usage policies explain them clearly and alert customers if they have been breached.
All the main ISPs have signed up to the code including TalkTalk, O2, BT and Virgin Media. Ofcom will also monitor compliance over the next six months to ensure ISPs are honouring their commitments.
Michael Philips, product director of Broadbandchoices.co.uk, said he welcomed the code of practice, but it didn't go far enough.
He said: "It looks at point of sale' information but doesn't address misleading advertising claims. We feel that broadband providers should advertise speeds in the same way that loans are advertised detailing a typical speed achieved'.
"In addition, whilst it alludes to future Ofcom involvement in performance benchmarking, there is not, at present, any recognised independent way of verifying ISP's speed claims."
He also said that directing ISPs to offer lower speed packages for customers for customers unable to achieve the speed they were sold was good in principle, but that many ISPs only offered a single speed offering anyway.
