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National Advertising Division Finds Certain “AT&T Guarantee” Claims Supported; Recommends Other Claims be Modified or Discontinued

1. NAD substantiated AT&T's 'Guarantee' claims regarding outages. 2. Recommendations made to modify misleading advertising claims. 3. Disclosure limitations in advertising were deemed insufficient. 4. NAD questioned AT&T's 'first and only' claims without evidence. 5. AT&T agrees to comply with NAD's recommendations.

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Why Neutral?

The findings don't significantly enhance or harm AT&T's market position. Historical cases, like Verizon's ad controversies, show minimal immediate stock impact.

How important is it?

The article addresses marketing clarity that could influence consumer trust and potential sales.

Why Short Term?

The immediate need for advertising modifications is urgent, with effects visible in quarterly returns.

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CHTRVZTMUS
New York, NY, Sept. 18, 2025 (GLOBE NEWSWIRE) -- In a challenge brought by competitor Charter Communications, Inc., BBB National Programs’ National Advertising Division determined that AT&T Services, Inc. substantiated its “AT&T Guarantee” claim for customers who experience internet and wireless connectivity outages in the context of the “Knowing You Exist” commercials. However, the National Advertising Division (NAD) recommended that AT&T modify or discontinue other claims related to its “AT&T Guarantee,” which appeared on AT&T’s website and in a series of “March Madness” TV commercials. “Knowing You Exist” Commercials Charter challenged a series of over a dozen 15- and 30-second TV commercials featuring vignettes of life situations that are “not guaranteed” and then introducing the new AT&T guarantee by stating, “You know what AT&T guarantees? The connectivity you depend on, the deals you want, and the service you deserve, or we’ll make it right.”   Based on the evidence in the record, NAD found that consumers are unlikely to take away a broad message that the guarantee covers all outages and are similarly unlikely to believe that “making it right” would broadly cover every possible type of outage. Consumers would understand that “making it right” is part of the guarantee and therefore would only cover those outages actually covered by the guarantee. NAD found that because the voiceover in the commercials explicitly states that “we’ll make it right” with on-screen text referencing “connectivity,” “deals,” and “service,” some consumers may take away a message that AT&T will make it right for when there is some kind of issue relating to connectivity, deals, or service that is covered by the guarantee. Here, AT&T makes it right by providing customers who qualify under the guarantee an automatic credit on their bill. Therefore, NAD concluded that the claim that AT&T will make it right for customers that do experience outages, in the context of the Knowing You Exist commercials, was substantiated. March Madness Commercials Charter also challenged a series of six 15- and 30-second commercials that aired during NCAA March Madness. All of the commercials set up the same dichotomy between situations in life that are “not guaranteed” and the new AT&T guarantee. There are multiple references to “connecting,” “connections,” and being “connected” in these commercials. The commercials also expressly state, “NETWORK INTERRUPTIONS FIXED FAST” and that customers will “GET A FULL DAY OF CREDIT.” NAD found that in this context, consumers are likely to take away a message that any outages will be fixed quickly and that they will receive compensation for such outages. NAD also found that the existing disclosure outlining material limitations to the guarantee, which appears briefly in tiny font amid busy visuals, is not clear and conspicuous. NAD also found that the existing disclosure, which appears for approximately five seconds in tiny font at the bottom of the screen in the March Madness commercials, with busy visuals and much larger headlines in the middle of the screen, is not clear and conspicuous. Further, NAD noted that the guarantee’s promise of “NETWORK INTERRUPTIONS FIXED FAST” is not one that can be qualified with a disclosure, as AT&T’s policy states an outage must last at least 20 or 60 minutes to be covered, a duration that might be unduly disruptive to users. Accordingly, NAD recommended that AT&T modify the guarantee claims to avoid conveying that AT&T will “make it right” for minor service disruptions. Specifically, NAD recommended that AT&T clearly and conspicuously disclose the material limitations of the guarantee and modify its advertising to avoid conveying any message that the guarantee will make it right by fixing any and all network interruptions “fast.” Website Claims NAD found that almost every reference to connectivity on AT&T’s website is accompanied by a disclosure that the guarantee offers credit back and that it applies only to outages of 20 or 60 minutes or more caused by a single incident impacting 10 or more towers, and that consumers cannot avoid seeing the disclosures. However, as the first reference to the AT&T guarantee in the website headline is not accompanied by a disclosure, NAD found that the disclosure was not clear and conspicuous and recommended that AT&T clearly and conspicuously disclose the material limitations of the claim. Regarding the remaining challenged website claims, because the guarantee only activates after an outage of 20 or 60 minutes, an unqualified message that AT&T will make it right by fixing any and all outages “fast” is not supported. NAD recommended AT&T modify the claims to avoid conveying the message that AT&T will fix the outage sooner than it actually will. First and Only Claim NAD determined that the challenged express and implied “first and only carrier” compound claims could reasonably convey the message that AT&T is the first and only carrier to provide a guarantee for wireless networks and the first and only carrier to provide a guarantee for fiber networks. AT&T presented no evidence that it is the first and/or only carrier to provide a guarantee or similar policy with respect to wireless or fiber networks. Therefore, NAD recommended that the “first and only” claims be discontinued. In its advertiser statement AT&T stated that while it respectfully disagrees that any changes to the challenged advertising are necessary, it “will comply with NAD’s decision.” All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, NARB, and CARU decisions, subscribe to the online archive. Per NAD/NARB Procedures, this release may not be used for advertising or promotional purposes. About BBB National Programs: BBB National Programs, a non-profit organization, is the home of U.S. independent industry self-regulation, currently operating more than 20 globally recognized programs that have been helping enhance consumer trust in business for more than 50 years. These programs provide third-party accountability and dispute resolution services that address existing and emerging industry issues, promote fair competition for businesses, and a better experience for consumers. BBB National Programs continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-and-teen-directed marketing, data privacy, dispute resolution, automobile warranty, technology, and emerging areas. To learn more, visit bbbprograms.org. About the National Advertising Division: The National Advertising Division of BBB National Programs provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. The National Advertising Division reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and promoting fair competition for business.

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