TL;DR
The National Advertising Division (NAD) found several T‑Mobile marketing claims to be unsupported or misleading after a challenge brought by AT&T. The watchdog recommended T‑Mobile discontinue or revise language about '10 price hikes,' universal satellite connectivity, and certain family 'added value' claims; T‑Mobile has appealed.
What happened
AT&T brought advertising claims about T‑Mobile before the National Advertising Division. After reviewing the materials, the NAD concluded that a T‑Mobile ad asserting that Verizon and AT&T had 'announced price increase over price increase a combined ten times in the past two years' was exaggerated and lacked adequate substantiation. The NAD said T‑Mobile had tried to count minor fee adjustments as 'price hikes' and recommended the carrier stop using the '10 price hikes' phrasing. The watchdog also rejected explicit satellite service statements — for example, claims that 'If customers can see the sky, they’re connected' and that users will 'never miss a moment' — on the grounds that the service is available only within the United States and does not reliably work everywhere there. Finally, the NAD found evidence supporting T‑Mobile’s $200-per-line added value claim but determined the advertised $600 family benefit was not adequately explained. The NAD urged discontinuation or modification of the disputed claims; T‑Mobile is appealing the decision.
Why it matters
- Advertising rulings can change how major carriers present competitive claims to consumers.
- Consumers rely on marketing language to compare plans; misleading phrasing may affect choices.
- NAD recommendations can pressure companies to alter ads even though the body lacks enforcement power.
- The dispute highlights intensified scrutiny among rivals in the US wireless market.
Key facts
- AT&T brought the complaint against T‑Mobile to the National Advertising Division.
- NAD found T‑Mobile’s claim of '10 price hikes in two years' to be exaggerated and unsupported.
- The NAD said T‑Mobile treated minor fee adjustments as 'price hikes' when assessing the claim.
- Explicit satellite connectivity claims like 'If customers can see the sky, they’re connected' were ruled not literally true.
- NAD noted T‑Mobile's satellite service is available only within the United States and does not reliably work everywhere in the country.
- The watchdog found evidence to support the $200 added value per line claim but said the $600 family total lacked adequate explanation.
- NAD recommended discontinuing or modifying the disputed express and implied claims to avoid conveying universal coverage or an unsupported bargain.
- The NAD cannot enforce its rulings; its recommendations are nonbinding.
- T‑Mobile has said it will appeal the NAD’s decision.
What to watch next
- Outcome of T‑Mobile’s appeal to see whether the NAD ruling is overturned or narrowed (not confirmed in the source).
- Whether T‑Mobile will revise its advertising language and promotional materials in response to the NAD recommendations (not confirmed in the source).
- Any follow-up regulatory or industry actions prompted by the NAD decision (not confirmed in the source).
Quick glossary
- National Advertising Division (NAD): An industry self-regulatory body that reviews national advertising claims and issues recommendations on their truthfulness and substantiation.
- Added value: A marketing term describing extra benefits or credits bundled with a product or service, often used to communicate savings or extras to consumers.
- Satellite connectivity: A service that uses satellites to provide voice or data links in areas without traditional cellular coverage; availability and performance can vary by geography and service design.
- Appeal: A formal request to a higher or reviewing body to reconsider a decision made by an adjudicating organization.
Reader FAQ
Who filed the complaint against T‑Mobile?
AT&T brought the matter before the National Advertising Division.
Can the NAD enforce its decision?
No; the NAD’s recommendations are nonbinding and it does not have enforcement authority.
Which T‑Mobile claims did the NAD find problematic?
The NAD challenged a '10 price hikes' claim, certain satellite connectivity statements, and aspects of a family 'added value' promotion.
Did T‑Mobile accept the NAD ruling?
T‑Mobile is appealing the NAD’s decision.
T-Mobile faces the National Advertising Division's reality check Credit: Android Police / T-Mobile By Karandeep Singh Oberoi Published 6 minutes ago Karandeep Singh Oberoi is a Durham College Journalism and Mass…
Sources
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