More T-Mobile ads are cited for using deceptive claims
On the heels of a previous recommendation made last week by the BBB National Programs’ National Advertising Division (NAD) that T-Mobile discontinue or modify a certain ad, the National Advertising Division recommended on Thursday that T-Mobile discontinue or modify a couple of claims made in a pair of advertisements. Using the Fast-Track SWIFT expedited process made to challenge single-issue advertising cases brought to the NAD, AT&T filed a claim against a particular T-Mobile commercial.
NAD recommended that a T-Mobile ad claiming 20% savings against AT&T and Verizon be discontinued or modified
The ad, titled "Holidays Are Coming in Hot" includes a statement made by T-Mobile that compared to AT&T and Verizon, T-Mobile subscribers save 20% every month in service costs. The NAD had to determine whether those viewing the ad were informed by T-Mobile that the 20% savings claim was calculated by taking the price of AT&T and Verizon's monthly service plans and adding the additional costs of third-party streaming platforms.
NAD came to the conclusion that consumers could not tell that T-Mobile's price comparison claims included the cost of streaming services. While a small disclosure shown during the ad indicates that streaming services are part of T-Mobile's price comparison claim, the NAD says that the disclosure is insufficient and recommends that T-Mobile stop making the claim that T-Mobile subscribers save 20% every month in service costs compared to AT&T and Verizon.
The National Advertising Division said that its decision does not prevent T-Mobile "from making truthful and not misleading price comparisons about the value of the streaming services it includes with its plans." The carrier said that while it disagrees with NAD, it will comply with its recommendation and "take NAD’s recommendations into account with respect to its future advertising."
In another case that was instigated by a Fast-Track SWIFT complaint filed by AT&T, the NAD determined that the claim made by T-Mobile in a pair of 30-second ads was misleading. In the commercials, T-Mobile said, "save on every plan vs. the other big guys" which most consumers would take to mean that the price at T-Mobile for a cell phone plan and the same number of lines will cost less than what you would pay for the same thing at AT&T or Verizon.
Once again, T-Mobile failed to provide an accurate comparison by including the cost of streaming services that are bundled with a T-Mobile plan on top of the cost of AT&T and Verizon's monthly plans. The NAD report stated that customers are unlikely to understand that the savings quoted in the commercial by T-Mobile include the value of streaming services bundled with T-Mobile's wireless service.
NAD says T-Mobile's claim is unsupported since in some cases its plans are more expensive than Verizon and AT&T
The big point made by NAD is that T-Mobile's claim was unsupported "because in some cases the price of T-Mobile’s plan, when not considering streaming services, is more expensive than comparable plans at AT&T and Verizon." As a result, NAD recommends that T-Mobile discontinue its "save on every plan vs. the other big guys" claim. Once again, T-Mobile said that even though it will comply with NAD recommendations, it "disagrees with NAD’s conclusions regarding the challenged advertising."
The two T-Mobile ads challenged by AT&T were 30-second spots. One features Kansas City Chief's Quarterback Patrick Mahomes and entertainer Snoop Dogg and the other stars Saturday Night Live cast member Marcello Hernandez.
While T-Mobile does not have to follow the recommendations of the NAD, the latter can refer AT&T's claims to the Federal Trade Commission (FTC). The FTC can start an investigation and take action against the companies that try to fool the public by showing deceptive advertisements.
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