T-Mobile says that it will comply with recommendations that it discontinue advertising claims in two Fast-Track SWIFT challenges brought by AT&T Services.
Fast-Track SWIFT challenges are an expedited process for single-issue advertising cases brought to BBB National Programs’ National Advertising Division (NAD).
One case focused on T-Mobile’s “Holidays are Coming in Hot” commercial in which the carrier promised prospective customers monthly savings of 20% compared to AT&T and Verizon. The question NAD considered was whether the T-Mobile advertising sufficiently informed prospective customers that the assessment included the cost of third-party streaming services in addition to the price of the carriers’ wireless plans.
NAD sided with the challenger.
“Because the main message of the commercial is price savings, without reference to optional add-on streaming services, NAD determined that the small on-screen print disclosure that references streaming services as the basis of comparison is insufficient and contradicts the main message of the commercial,” the press release said.
The other case was similar. It involved two 30-second T-Mobile commercials. One features NFL quarterback Patrick Mahomes and rapper Snoop Dogg and the other Saturday Night Live cast member Marcello Hernandez. Both advertising spots include the claim that T-Mobile subscribers “save on every plan vs. the other big guys.”
NAD found the claim misleading because it includes the cost of third-party streaming services bundled with a T-Mobile plan on top of the price of AT&T and Verizon wireless plans.
“NAD… determined that the bundled streaming services are ancillary benefits to cellular phone plans that consumers are unlikely to expect are included when plan prices are being compared and that consumers are unlikely to understand that the savings comparison includes the value of streaming services bundled with a T-Mobile plan,” read the press release on that decision.
In both cases, T-Mobile said it would comply with the recommendation though it “disagrees with NAD’s conclusions regarding the challenged advertising.”
Charter Spectrum Mobile also objected to the 20% savings claim. In that case, NAD recommended that T-Mobile discontinue or modify the advertising claim.
More on NAD decisions can be found on their decisions webpage.
