A challenge by Vodafone Group PLC (LSE:VOD) against a marketing claim by Virgin Media O2 for "the fastest WiFi guarantee of any major provider" has been upheld by the UK advertising watchdog.
While Virgin Media said its guarantee was the fastest of major providers, three times that of Vodafone, and clarified this claim was about the guarantee, not overall WiFi speed, the Advertising Standards Agency ruled that the ad was misleading.
Consumers would understand the guarantee claim to mean that Virgin Media guaranteed they offered the fastest WiFi service of any major broadband provider, the ASA said, adding that many consumers would not be aware of WiFi guarantees as a concept.
"The difference between guaranteeing the highest speed and offering a guarantee which promised action by the advertiser if a minimum speed was not met was a subtle one and required clear explanation to ensure that consumers were not misled about what was being offered," the regulator said.
The ad was seen on the Virgin Media website this summer offering its WiFi Max service and download speeds of at least 30Mbps in every room, with signal-boosting mesh WiFi pods if the normal signal was not enough.
As part of the promotion, Virgin Media launched a "WiFi guarantee", which promised money back if download speeds are below 30Mbps in every room.
In a submission to the ASA, Vodafone challenged whether the claim 'Get the fastest WiFi Guarantee of any major provider' was misleading and could be substantiated.
A Virgin Media spokesperson, said the company was "surprised and disappointed" by the ruling.
“Given no consumers complained about the advert, and independent polling has shown the majority of people correctly understood what our claim meant, it’s slightly baffling that the ASA has ruled in this way.”