Recently, T-Mobile has come under scrutiny for making misleading claims in its advertisements, following recommendations from the BBB National Programs’ National Advertising Division (NAD). The latest reviews concluded that two of T-Mobile’s advertisements contain dubious assertions regarding savings compared to competitors like AT&T and Verizon, prompting a recommendation for changes or discontinuation of the ads.
NAD Calls for Modification of Claims Highlighting 20% Savings
One advertisement titled "Holidays Are Coming in Hot" features a claim that customers can save 20% on monthly service costs when they choose T-Mobile over AT&T and Verizon. The NAD had to assess whether T-Mobile adequately disclosed that this 20% savings claim incorporates the additional expenses related to third-party streaming platforms, alongside the monthly service plans of other carriers.
Upon review, the NAD determined that the advertisement did not sufficiently inform viewers that streaming services were factored into T-Mobile's price comparison. Although a brief notice was displayed in the ad, it was deemed inadequate for ensuring consumers fully understood the context of the savings claimed. Thus, the NAD suggested that T-Mobile cease using this misleading savings claim.
It’s important to note that T-Mobile is still permitted to promote truthful comparisons of its service prices, including the value of bundled streaming services. While T-Mobile plans to comply with the NAD’s recommendations, the company expressed its disagreement with the findings, indicating that it would consider them in future advertising strategies.
In another instance triggered by an AT&T complaint using the Fast-Track SWIFT process, the NAD found that claims made by T-Mobile in several 30-second advertisements were misleading. In these commercials, T-Mobile stated, "save on every plan vs. the other big guys," a message that many consumers likely interpreted as suggesting that T-Mobile’s prices for cell phone plans would be lower than those from AT&T and Verizon.
However, the NAD noted that T-Mobile once again failed to provide an accurate comparison. The assessment revealed that customers may not realize the quoted savings included the cost of bundled streaming services unique to T-Mobile plans.
NAD Highlights Price Discrepancies in T-Mobile’s Claims
The NAD emphasized that T-Mobile's claims were unsupported, indicating that in certain scenarios, T-Mobile's plans could even exceed the cost of comparable plans from Verizon and AT&T if streaming services were not factored in. Consequently, the NAD has advised T-Mobile to retract the claim stating, "save on every plan vs. the other big guys." T-Mobile reiterated its intention to comply with NAD recommendations while still contesting the conclusions regarding its advertising.
The challenged T-Mobile ads featured high-profile personalities, including NFL quarterback Patrick Mahomes and entertainer Snoop Dogg, as well as Saturday Night Live participant Marcello Hernandez.
Although T-Mobile has the option not to adhere to NAD recommendations, notable consequences could arise if the issue is escalated to the Federal Trade Commission (FTC), who could initiate investigations into companies making deceptive advertising claims.
