The National Advertising Division (NAD) has escalated the fight between T-Mobile and AT&T to the Federal Trade Commission (FTC) and state attorneys general.
The NAD, part of BBB National Programs, made the referral because T-Mobile has declined to participate in an NAD inquiry. The case in question revolves around T-Mobile’s claims about its 5G network capacity and AT&T’s response to those claims.
On its website, T-Mobile says, “T-Mobile is America’s largest and fastest 5G network, with more 5G network awards than any other carrier.” It adds that it built its network using dedicated 5G frequencies and says other carriers can’t match its nationwide coverage.
These claims may be true, but they don’t necessarily mean T-Mobile offers the best 5G service everywhere.
This latest escalation is separate from the AT&T lawsuit against NAD regarding AT&T’s use of NAD decisions, and also separate from the recent case between AT&T and T-Mobile over T-Mobile’s “Easy Switch” tool.
However, T-Mobile told the NAD it won’t participate in the case regarding its 5G network capacity claims because of the new litigation between AT&T and T-Mobile.
In addition to referring the matter to state attorneys general and the FTC, the NAD plans to bring it up with advertising platforms on which the T-Mobile claims appear. So far, that includes YouTube and Facebook, but T-Mobile has also made claims in press releases and during live promotional events.
All the cases are fights over what the carriers are telling their customers, with the NAD acting as a nonprofit regulator for the industry. All three big carriers — AT&T, T-Mobile, and Verizo — and their mobile virtual network operators (MVNOs) appear before the NAD and its review board regularly. The BBB National Programs also reviews matters regarding home internet providers.
Please note: After this story was published, T-Mobile reached out to Telecompetitor with this statement:
“We are disappointed that the NAD has made the decision to refer this matter. T-Mobile has long been and continues to be a strong supporter of the National Advertising Division (NAD) and self-regulation. AT&T has publicly stated in a federal lawsuit against NAD’s parent organization that AT&T does not believe it is bound by any of the rules or agreements that come with participation in proceedings before the NAD self-regulatory industry body. We believe the claim that is being challenged is well substantiated and true, but due to AT&T’s stated position, T-Mobile has serious confidentiality concerns with any information that would have to be shared in an NAD proceeding initiated by AT&T, which led T-Mobile to decline to participate in this specific proceeding pending the outcome of AT&T’s federal litigation.”
