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National Advertising Review Board Recommends T-Mobile Discontinue Certain Comparative Savings Claims for its Mobile Telephone Service

1. NARB recommends TMUS discontinue express savings claims due to misleading implications. 2. Claims included savings comparisons to Verizon and AT&T offering 20% savings plus streaming. 3. NARB found 'plus streaming' phrase confusing, leading to consumer misunderstandings. 4. TMUS conservatively agreed to comply, indicating potential impact on future advertising. 5. Verizon initiated the challenge, signaling ongoing competitive tensions in the market.

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FAQ

Why Bearish?

The decision undermines TMUS's marketing strategy, potentially hurting sales and market perception, similar to past regulatory impacts on telecom advertising. Negative consumer perception could persist if ads are misleading.

How important is it?

The recommendations directly impact TMUS's competitive positioning and advertising credibility in a highly competitive sector.

Why Short Term?

Changes in advertising practices should affect immediate consumer reactions and sales, similar to previous instances where consumer trust was impacted by marketing claims.

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VZTSDISH
A panel of BBB National Programs’ National Advertising Review Board (NARB), the appellate advertising body of BBB National Programs, has recommended that T-Mobile US, Inc. discontinue the express savings claims. August 11, 2025 12:00 ET  | Source: BBB NATIONAL PROGRAMS New York, NY, Aug. 11, 2025 (GLOBE NEWSWIRE) -- A panel of BBB National Programs’ National Advertising Review Board (NARB), the appellate advertising body of BBB National Programs, has recommended that T-Mobile US, Inc. discontinue the express savings claims: “Families can switch and save 20% vs. the other big guys plans plus streaming services.”“Switch and save versus AT&T and Verizon’s comparable plans plus streaming.” The NARB panel also recommended that T-Mobile modify its advertising to avoid certain unsupported implied claims. The underlying National Advertising Division (NAD) case (#7415) was initiated by Verizon Communications Inc. In that challenge, NAD recommended T-Mobile discontinue savings claims that appeared in a “Save on Every Plan” brochure, two commercials, “Top Three plays of the Day” and “Holidays are Coming in Hot: Families: Save 20%,” a T-Mobile USA press release, and on T-Mobile’s Savings Calculator website. During the challenge, T-Mobile informed NAD that it had modified the savings claims to explicitly reference streaming services in the claims themselves and modified its disclosures for the savings claim. The NARB panel’s review centered on whether T-Mobile’s addition of the phrase “plus streaming services,” or “plus streaming,” to its reference to monthly plan costs for Verizon or AT&T (or “the other big guys”), clearly communicates to reasonable consumers that T-Mobile’s price comparisons are based on adding to the cost of the competitor’s monthly price plan the cost of optional streaming services to match the streaming services offered for free by T-Mobile with its comparable plans. In agreement with NAD, the NARB panel concluded that the “plus streaming” phraseology is confusing, unclear, and inadequate to accurately communicate the nature of the price comparison. Further, the panel agreed with NAD that many reasonable consumers will conclude that the promoted savings is based on the cost of the wireless plans without any adjustments for additional benefits. Based on these findings, the NARB panel recommended that T-Mobile discontinue its express modified savings claims. The panel further recommended that T-Mobile modify its advertising to avoid implying the following: Every mobile plan offered by T-Mobile costs less than comparable plans offered by T-Mobile’s competitors, including Verizon.All consumers on all of T-Mobile’s plans will save money or save 20% when compared to consumers on competitors’ plans. The NARB panel did not agree with NAD that a third implied claim, “Verizon’s mobile plans include a mandatory ‘similar streaming services’ fee,” is communicated. The panel further disagreed with NAD’s recommendation that T-Mobile must “discontinue” (rather than modify) the challenged advertising to avoid communicating the two unsupported implied claims. In its advertiser statement, T-Mobile stated that while it “disagrees with the panel’s decision,” it will “comply with the panel’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 Review Board (NARB): The National Advertising Review Board (NARB) is the appellate body for BBB National Programs’ advertising self-regulatory programs. NARB’s panel members include 85 distinguished volunteer professionals from the national advertising industry, agencies, and public members, such as academics and former members of the public sector. NARB serves as a layer of independent industry peer review that helps engender trust and compliance in NAD, CARU, and DSSRC matters. Contact Data Name: Jennifer Rosenberg Email: jrosenberg@bbbnp.org Job Title: Media Relations

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