Yesterday, BBB National Programs’ National Advertising Division (NAD) issued a ruling saying that AT&T violated Section 2.1(I) of the NAD/National Advertising Review Board (NARB) procedures. As a result, NAD demanded AT&T immediately remove the materials in question and “cease all future dissemination.”
The procedures in question say that NARB participants — like AT&T — agree “not to mischaracterize any decision, abstract, or press release issued or use and/or disseminate such decision, abstract or press release for advertising and/or promotional purposes.”
The NAD says AT&T violated this procedure when the company issued a press release and ad stating that T-Mobile has had multiple NAD judgments against their advertising.
The AT&T press release in question states: “AT&T is striking back with a new advertising campaign featuring Luke Wilson that underscores a simple truth: trust is earned through action. The campaign calls out the litany of misleading and deceiving claims in T-Mobile’s marketing. The Better Business Bureau’s advertising watchdog asked T-Mobile to correct their marketing claims 16 times over the last four years. That’s more than each of the entire consumer electronics and financial services industries.”
NAD said AT&T’s violation of its procedures and AT&T’s use of NAD’s decisions in their ad and press release “undermines NAD’s mission to promote truth and accuracy of advertising claims and foster consumer trust in the marketplace.”
Telecompetitor contacted AT&T for a comment. AT&T Chief Operating Officer Jeff McElfresh said, “Some companies mislead customers; others stand up for them. AT&T thinks all consumers deserve to hear the truth, even if it makes T-Mobile uncomfortable.” McElfresh did not address the NAD ruling.
AT&T and T-Mobile have been going back and forth about advertising claims and counterclaims. Recently, some T-Mobile advertising making specific claims about AT&T was questioned by NAD. The advertising T-Mobile was asked to discontinue are, “Families can switch and save 20% vs. the other big guys plans plus streaming services,” and “Switch and save versus AT&T and Verizon’s comparable plans plus streaming.”
