Internet providers could soon be fined for failing to advertise realistic broadband speeds.

A new plan put before the Federal Government proposes fines of up to $1 million for companies that make deceptive speed claims.

A new bill — tabled by federal independent MP Andrew Wilkie — calls for strict news rules on the marketing of internet speeds.

The bill would force ISPs to display:

  • Information about typical (not maximum) broadband speeds
  • Information about typical busy periods for customers and happens to speeds during that time
  • Information about other factors that may affect the performance of internet services

The Australian Competition and Consumer Commission (ACCC) recently issued guidelines for NBN providers, asking them to give customers:

  • Information about the typical speed of each of their NBN broadband plans in the busy evening period (7-11pm)
  • The maximum attainable speed of NBN services

Mr Wilkie said the ACCC cannot currently enforce these guidelines.

“I'm hard pressed to think of any other product that's on the market in the country where you're sold a promise and the service provider or the manufacturer is not required to actually deliver on their promise,” Mr Wilkie told reporters.

“We really need to give the ACCC the muscle to enforce those warnings.”