It is hoped that the standards of price comparison sites can be raised by a newly-launched code of practice.

All price comparison websites will be called on to sign up to the Comparison Consortium's voluntary code.

Online customers are guided to the best deals by comparison sites - which are popular for insurance, utilities and savings accounts.

However, the Financial Services Authority (FSA) warned last year that insurance comparison websites may be misleading consumers in their presentation of information.

Several problems were found with sites - including that they were using assumptions to generate quotes and giving inaccurate and out-of-date policy information, the FSA said.

It is thought that the new code could be the first stage in solving some of these problems.

The code, which wants consumers treated fairly, calls on sites to be transparent and conduct their business with integrity.

A common complaints procedure will have to be conformed to by sites signing up to the code, which also demands that customers` complaints are used to identify how the industry can improve.

The Comparison Consortium's seal of approval will be displayed on sites which have signed up, but, as the code is voluntary, no action will be taken against firms who flout it.

Richard Mason, co-founder of the Comparison Consortium, said: "As the number of players proliferates and the industry moves from infancy to adolescence, an authority figure to guide the sector has become central to its healthy development.

"As such, it only seemed proper that the industry's veterans assume this guardianship role by defining the boundaries and instilling a common set of principles throughout.

"The introduction of this code will ensure that customers are treated fairly and respectfully, and help the industry move one step closer to adulthood."

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