The BBB National Programs’ National Advertising Division (NAD) has ruled that that Verizon provided adequate disclosure of a future price increase in connection with its “four lines for $25/line” wireless service offer.
T-Mobile had called the disclosure into question in a Fast-Track SWIFT challenge, an expedited process for single-issue advertising cases reviewed by the NAD. The issue T-Mobile called into question was whether Verizon’s video and online advertising adequately disclosed that its $25 per line pricing is a 36-month promotional rate that increases to $30 per line after the promotional period.
According to the NAD ruling, the three-year price and future increase aligns with reasonable consumer expectations that wireless rates may adjust over the long term, unlike short-term teaser offers that lead to dramatic price hikes after only a few months.
The NAD ruled that since Verizon’s advertising didn’t promise a “perpetual guarantee” or messaging suggesting the price would never change, the future $5 per month per line increase was not a material term requiring more prominent disclosure than what Verizon already provided.
All three of the major telecom companies are regularly involved in disputes about advertising, including one last November involving T-Mobile and Verizon. At issue was T-Mobile’s claim that customers could switch to its service in 15 minutes and may save up to 20% when they do. At the time, T-Mobile claimed customers would be able to get their new handsets right away via DoorDash Drive.
“Every year, over 34 million Americans switch providers, wasting over three hours on average on an outdated, confusing, complex process,” said Srini Gopalan, CEO, T-Mobile, in a live event. Within a day of T-Mobile’s live event, Verizon published its own press release its own press release countering T-Mobile’s claims, saying Verizon offers the “superior switching experience.”
