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National Advertising Division Recommends T-Mobile Discontinue or Modify 20% Savings vs. ‘The Other Big Guys' Claim; T-Mobile to Appeal

1. T-Mobile's advertising claim on savings challenged by Charter Communications. 2. NAD recommends T-Mobile modify ads to clarify competitive claims. 3. NAD found ambiguous the claim that families save 20% with T-Mobile. 4. Savings for Spectrum customers not achievable in the first year. 5. T-Mobile plans to appeal NAD's recommendation to NARB.

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FAQ

Why Bearish?

T-Mobile faces regulatory challenges, impacting brand perception and marketing strategy.

How important is it?

Advertising compliance is crucial for T-Mobile's competitive positioning, likely affecting customer acquisition.

Why Short Term?

Immediate effects on advertising and potential sales could occur soon.

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BBB National Programs’ National Advertising Division recommended that T-Mobile US, Inc. discontinue or modify its advertising to avoid conveying the comparative claim that consumers can “save 20% every month vs. the other big guys” if they subscribe to T-Mobile in markets where Spectrum Mobile also provides service. January 09, 2025 09:00 ET  | Source: BBB NATIONAL PROGRAMS New York, NY, Jan. 09, 2025 (GLOBE NEWSWIRE) -- BBB National Programs’ National Advertising Division recommended that T-Mobile US, Inc. discontinue or modify its advertising to avoid conveying the comparative claim that consumers can “save 20% every month vs. the other big guys” if they subscribe to T-Mobile in markets where Spectrum Mobile also provides service. Charter Communications, Inc., which owns and operates Spectrum Mobile, challenged T-Mobile's advertising under Fast-Track SWIFT, an expedited challenge process designed for single-issue advertising cases brought to the National Advertising Division (NAD). In T-Mobile's “Top Three Plays of the Day” commercial featuring influencer Kai Cenat, NFL player Patrick Mahomes, and rapper Snoop Dogg, T-Mobile advertises that “families can save 20% vs. the other big guys” with T-Mobile wireless service. “The Other Big Guys” Charter argued the generic reference to "the other big guys" in the commercial included Spectrum Mobile. NAD determined that the claim “the other big guys” is ambiguous and it is not clear from the context of the ad which competitors are being compared, so prospective consumers who live within Spectrum’s limited nationwide footprint could reasonably interpret the challenged claim as against Spectrum Mobile.   Price Comparison NAD also examined whether prospective customers could save 20% by switching to T-Mobile compared to Spectrum Mobile. NAD found that any savings for Spectrum customers would not be achieved in the first year due to a promotional offer that expires after one year. While the advertised claim touts “Families Can Save,” it was unclear if customers choosing T-Mobile would achieve 20% savings over Spectrum Mobile in the first year. Therefore, NAD recommended T-Mobile discontinue or modify its advertising to make clear the company/(ies) that are the object of the comparison (“the other big guys”) in those markets where Spectrum Mobile also provides service. In its advertiser statement, T-Mobile stated that it is “disappointed with NAD’s decision in this case" and that it will appeal NAD’s decision to the National Advertising Review Board (NARB). 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. 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 a dozen 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 a fairer playing field 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 leveling the playing field for business.   Contact Data Name: Jennie Rosenberg Email: jrosenberg@bbbnp.org Job Title: Media Relations

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