Verizon beats back T-Mobile challenge over promotion of its $25/line per month deal
T-Mobile filed an expedited complaint against Verizon and lost.
T-Mobile loses challenge over Verizon ad. | Image by PhoneArena
Using the Fast-Track SWIFT process offered by the BBB National Programs' National Advertising Division (NAD) to expedite single-issue advertising cases, T-Mobile challenged one of Verizon's television commercials. The ad in question promoted Verizon's four lines for $25/line per month offer.
T-Mobile unsuccessfully challenges a Verizon ad with the NAD
The issue was whether Verizon's video and online ads included enough of a disclosure making it clear that the $25/line per month pricing was a promotional price. After 36 months, the price goes up to $30 per line per month.
The NAD ruled against T-Mobile and in favor of Verizon stating that the three-year price increase "aligns with reasonable consumer expectations that wireless rates may adjust over the long term." In other words, the NAD said that consumers would normally expect wireless prices to rise over time, and that differentiates Verizon's offer from a misleading one that includes a "dramatic" price hike after a short period of time.
The NAD ruled that Verizon does not need to modify the ad promoting four lines for $25/line per month
Additionally, the NAD noted that Verizon's offer did not include a "perpetual guarantee" nor did it include a message stating that the price would never change. As a result, NAD felt that the $5 per line per month increase did not require any additional disclosure than what the carrier already included in the spot.
As a result, T-Mobile's challenge was shot down and Verizon does not need to modify the ad. This is just one of several NAD skirmishes that we have reported on over the years as the "Big 3" wireless providers have taken turns filing with the NAD over commercials released by the "other guys."
No industry is as competitive as wireless is right now
The National Advertising Division of BBB National Programs looks at advertisements in all media as it sets standards for truth and accuracy in advertising. This protects U.S. customers and helps to promote fair competition among companies.
Did the NAD get this right?
Verizon advertised four lines for $25/line per month. | Image by Verizon
Is there any industry that is as competitive as wireless is right now? This is why T-Mobile, Verizon, and AT&T watch each other's ads closely, looking for something that can be challenged in a complaint made to the NAD.
To reiterate, the winner of the latest challenge is Verizon, while T-Mobile takes the "L" with this one.
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