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National Advertising Division Finds Certain T-Mobile Claims Supported, Recommends Modifications to Others; T-Mobile to Appeal

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In a challenge brought by AT&T Services, Inc., BBB National Programs' National Advertising Division ...

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Corporate Developments

The regulatory scrutiny can have a notable impact on T-Mobile’s brand image and sales.

FAQ

Why Bearish?

False advertising claims can damage credibility and trust. Historical cases show stock price drop after missed claims.

How important is it?

The regulatory scrutiny can have a notable impact on T-Mobile’s brand image and sales.

Why Short Term?

Regulatory actions often lead to immediate market reactions. Past incidents show quick dips post-announcement.

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T-Mobile Faces Review of Advertising Claims by National Advertising Division

On January 8, 2026, the National Advertising Division (NAD) of BBB National Programs determined that some advertising claims made by T-Mobile US, Inc. (TMUS) for its Wireless Communication Services and T-Satellite service were substantiated, while others related to price increases, satellite coverage, and added value required modification or discontinuation. T-Mobile intends to appeal this decision, continuing its rivalry with AT&T Services, Inc. in the competitive wireless telecommunications market.

Review Findings on Price Hike Claims

The NAD's investigation centered on T-Mobile's promotional advertisements, particularly those highlighting their "Experience More" and "Experience Beyond" plans. One claim asserted that "AT&T and Verizon have announced price increase over price increase a combined ten times in the past two years." However, NAD concluded that this statement was inaccurate, as it found no evidence supporting ten price hikes by AT&T during the specified timeframe.

  • NAD recommended discontinuation of T-Mobile's claim regarding "10 price hikes."
  • T-Mobile's assertion that it implemented only one price increase on its talk, text, and data plans over the past decade was upheld.

Concerns Regarding Satellite Coverage Claims

The NAD examined claims made in promotional materials asserting that "If customers can see the sky, they’re connected [to T-Satellite]" and "No matter where you are, you will never miss a moment." These implied that T-Satellite provides universal coverage, which the NAD found misleading.

  • NAD advised T-Mobile to discontinue these claims to avoid misleading consumers regarding coverage.
  • Claims suggesting 100% coverage were deemed not properly qualified, necessitating a change in T-Mobile's advertising strategy.

Evaluation of Added Value Claims

AT&T also challenged T-Mobile's advertising claims about the "Experience Beyond" plan, stating it offers $200 in added value per line and $600 for a family of three. While NAD verified that T-Mobile provided supporting evidence for the $200 claim, it found insufficient basis for the $600 figure.

  • Recommendations include modifying or discontinuing claims to ensure transparency and validity.
  • Advertising should clearly enumerate benefits or incorporate disclosures to enhance consumer understanding.

Changes to Family Savings Claims

During the review, T-Mobile made a significant announcement, stating it would permanently discontinue the "families can save 20%" claims. NAD treated this as compliant with their recommendations without needing further evaluation.

T-Mobile's Response to the NAD Decision

In response to the NAD's findings, T-Mobile expressed appreciation for the organization's commitment to self-regulation but affirmed its intent to appeal the decision. This illustrates T-Mobile's proactive stance in the competitive telecommunications market as it seeks to maintain its advertising strategies.

About the BBB National Programs

BBB National Programs is a non-profit organization dedicated to fostering consumer trust in business through independent industry self-regulation. It operates over 20 programs aimed at providing accountability and improving business practices in sectors such as advertising and technology.

For comprehensive details on BBB National Programs and their initiatives, please visit bbbprograms.org.

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