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National Advertising Division Finds Certain Verizon Satellite Texting Claims Supported; Recommends Modified Disclosures for Others

1. NAD found Verizon's satellite texting claims supported but requires clearer disclosures. 2. Verizon must clarify its 'largest network' claims regarding postpaid phone connections. 3. The T-Mobile challenge questioned the clarity of Verizon's advertising messages. 4. NAD recommended modifications to ensure clear consumer understanding of claims. 5. Verizon has agreed to comply with NAD's recommendations for advertising.

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Why Neutral?

The NAD's findings demand clarity but do not fundamentally undermine Verizon's offerings, similar to past incidents where companies adjusted marketing while maintaining customer trust.

How important is it?

The article impacts advertising strategy, which may influence short-term investor perception but lacks direct operational or financial changes.

Why Short Term?

The immediate impact relates to advertising adjustments; over time, consistent consumer trust can stabilize valuations.

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TTMUSAT
New York, NY, June 18, 2025 (GLOBE NEWSWIRE) -- Following a challenge brought by T-Mobile US, Inc., BBB National Programs’ National Advertising Division found certain claims related to Verizon’s Communications Inc.’s Satellite Texting services supported but recommended that Verizon modify disclosures for other Satellite Texting service and “largest network” advertising. The National Advertising Division (NAD) reviewed express claims made by Verizon, including that it is “conquering dead zones with satellite” and that it operates “America’s largest network.” Satellite Claims NAD found that the challenged claims “VERIZON Satellite Powered” and “Verizon is conquering dead zones with satellite,” do not convey the message that only Verizon has this functionality or that competitors do not. NAD next examined whether there was support for Verizon’s monadic claims. NAD found that the Verizon/AST SpaceMobile partnership, which is only in testing stages, could not support the challenged claims. NAD noted that although the Globalstar and Skylo partnerships were not on Verizon’s network, the precise details of how satellite texting is achieved (including whether this is done through Verizon’s own network or otherwise) is likely immaterial to consumers. NAD also found the disclosure that appeared in the discontinued Buzz Aldren commercial, stating “Satellite connectivity requires select new model phones with updated software. Must be outside w/line of sight to satellite; might not work in parts of Alaska," did not clearly and conspicuously disclose that only newer phone models with updated software will be able to access this service. NAD therefore concluded that Verizon has provided a reasonable basis for the claims “VERIZON Satellite Powered” and “Verizon is conquering dead zones with satellite,” but recommended that in future advertising, Verizon ensure that any accompanying disclosures describing the availability of the satellite texting features be clear and conspicuous. “Largest Network” Claims T-Mobile challenged Verizon’s “America’s largest network” claim that included the disclosure, “‘Largest network’ based on total postpaid phone connections publicly reported by Verizon, T-Mobile, and AT&T, Q3 ’24.”, arguing that in the telecom industry, “largest network” typically refers to geographic coverage or population reach, not subscriber numbers. NAD found the phrase “largest network” to be ambiguous, potentially conveying different messages to consumers. NAD also determined that the term “postpaid phone connections” may not clearly communicate that it refers to Verizon subscribers. NAD therefore concluded that the challenged claims could be substantiated when properly qualified with an appropriate disclosure, but that Verizon’s disclosure was not clear or conspicuous due to the use of the term “postpaid phone connections.” NAD recommended that Verizon modify its disclosure to make clear what “postpaid phone connections” references. During the inquiry, Verizon informed NAD that it had permanently discontinued the challenged implied claims relating to satellite-supported texting and its wireless network. Except where it relates to overlap with express claims, NAD did not review the discontinued claims on their merits and will treat the claims, for compliance purposes, as though NAD recommended they be discontinued. In its advertiser’s statement, Verizon stated that it “will comply with NAD’s recommendations.” 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 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, create 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 (NAD) of BBB National Programs provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. NAD reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and create fair competition for business.

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