Internet service providers (ISPs) should be forced to abide by a code of practice to stop consumers being misled over broadband speeds, Ofcom's Consumer Panel has said.

The panel, set up as an independent body to advise Ofcom on issues in the telecommuncations market, said consumers often do not receive the advertised broadband speeds they pay for.

This lack of transparency for consumers on advertised speeds was the reason behind Computeractive's Crystal Clear Broadband campaign at the end of last year.

We also called on Ofcom to make ISPs provide clear information to consumers about the actual speed they are likely to receive prior to subscription.

Colette Bowe, chairman of the Ofcom Consumer Panel, told us the campaign had been an instrumental factor in highlighting the mismatch between delivered and advertised speeds.

"Computeractive's research was a very important trigger. We already had this issue on our radar but your research brought it right up on our agenda," she said.

Following discussions in November with the UK's six leading ISPS about its concerns, Ms Bowe has written to Ofcom's chief executive Ed Richards asking the regulator to take a lead on the issue.

“We would like to see Ofcom leading discussions with industry to produce an enforceable code of practice that would be mandatory for ISPs. This code would establish agreed processes to give the customer the best information during and after the sales process, and to give them flexibility to move freely to different packages that reflct the actual speeds with which their ISPs are able to provide them," she said.

According to the panel, the code of practice should force ISPs to tell consumers, during the sales process, about the theoretical maximum line speed they could expect and the factors that affect this.

The panel also said ISPs should contact customers two weeks after installation to provide them with the actual line speed supported by their line. If the actual line speed is significantly lower than the package bought, consumers should have a penalty-free choice to move to a different package or, in certain circumstances, opt out of their contract.

It also wants the Advertising Standards Authority (ASA) to tighten up the advertising of broadband speeds.

Ofcom agreed there appeared to be problems with advertised speeds but wants the issue investigated needed further. It said: "There were no surprises in the letter from the Consumer Panel. We are very concerned about the issue and it is being investigated. We actively support the spirit of the proposals in the letter from the panel."