T-Mobile Defies Ruling, Continues to Make Deceptive Claim in TV Ads

T-Mobile’s Advertising Dispute: A Month of Controversy

The National Advertising Division (NAD) of the Better Business Bureau National Program recently sparked a heated debate in the wireless industry. At the center of the controversy is T-Mobile’s claim that their wireless service can save families 20% every month compared to the other big guys. The dispute began when Charter Communications, the parent company of Spectrum Mobile, filed a complaint with the NAD, arguing that Spectrum should be considered one of the big guys.

The Dispute: Fact vs. Fiction

The NAD investigation found that T-Mobile’s claim was not entirely accurate. The issue lies in Spectrum’s promotional offer, which provides a discounted price for customers during their first year with the company. This means that a Spectrum customer would not achieve the 20% savings claimed by T-Mobile. However, the NAD did find that T-Mobile’s pricing claim was valid if consumers considered the big three – Verizon, T-Mobile, and AT&T – as the major players in the mobile phone industry.

NARB Reverses NAD’s Decision

The National Advertising Review Board (NARB) has since reversed the NAD’s decision. The NARB panel disagreed with the NAD’s findings, stating that in the mobile phone industry, the big three are Verizon, T-Mobile, and AT&T based on their market shares. The panel also argued that consumers would not consider Spectrum Mobile, with its smaller market share, one of the big guys. Furthermore, the NARB noted that T-Mobile’s pricing claim is valid, as their website offers a savings calculator that allows consumers to calculate their savings themselves.

T-Mobile’s Response

In response to the NARB’s decision, T-Mobile issued a statement appreciating the panel’s careful consideration of the parties’ arguments. The carrier emphasized its support for the self-regulation process, which aims to ensure truthful and accurate advertising in the wireless industry.

What’s Next?

The NARB’s reversal of the NAD’s decision has significant implications for the wireless industry. T-Mobile can now continue to use their "20% savings" claim in their advertising, provided they clearly communicate the exclusions and limitations. The dispute serves as a reminder of the importance of accurate and transparent advertising practices in the wireless industry.

Key Takeaways:

• T-Mobile claimed that their wireless service can save families 20% every month compared to the other big guys.
• The NAD investigated the claim and found that it was not entirely accurate due to Spectrum’s promotional offer.
• The NARB reversed the NAD’s decision, stating that T-Mobile’s pricing claim is valid and consumers would not consider Spectrum one of the big guys.
• T-Mobile can continue to use their "20% savings" claim in their advertising, provided they clearly communicate the exclusions and limitations.