Freeserve and NTL have had their knuckles rapped by the Advertising Standards Authority over false claims in their advertising.

In an advertising campaign for Freeserve HomeTime, the internet service provider promised there would be "No charges until March 2001".

Only in the small print were consumers informed they would face a monthly charge from BT for the service.

The ASA ruled the advert was misleading and advised Freeserve to consult its copy advice team before advertising similar offers in future.

The watchdog also upheld a complaint from BT against cable company NTL over a direct mailing for a digital TV and telephone package. The mailing compared BT's offering unfavourably with its own.

The ASA agreed with BT's complaint that NTL's claim to offer "Free local talk time to other NTL phone users" was misleading because customers paid a 3.5p connection charge for all calls.

The watchdog also ruled the comparison with BT was unfair because NTL had compared its direct debit only package with a package from BT that allowed customers to pay however they wanted.