Charter Communications, the company that owns Spectrum Mobile, used the NAD’s Fast-Track SWIFT process to file a complaint against T-Mobile‘s ad. This is an expedited challenge offered by the NAD to those complaining about just one thing related to an advertisement. The ad, titled “Top Three Plays of the Day,” stars Snoop Dogg who gives narration about three “plays” with some of them featuring Kansas City Chief’s Quarterback Patrick Mahomes.
Charter argued that the comment made by T-Mobile that its service is 20% cheaper than the other big guys includes Charter’s Spectrum Mobile. The NAD determined that it isn’t clear which of T-Mobile‘s competitors are included in “the other big guys” statement and said that the statement is “ambiguous.”
The NAD pointed out that consumers who saw the ad within Spectrum’s limited coverage area could reasonably assume that Spectrum Mobile was one of “the other big guys” and that T-Mobile‘s ad was stating that its wireless service could save Spectrum Mobile customers 20% if they switch to T-Mobile. But the NAD discovered that any Spectrum customer switching to T-Mobile would not achieve the 20% savings in their first year with T-Mobile because of a promotional offer that ends after year one.
So while the disputed ad says “Families Can Save,” if Spectrum is included among “the other big guys” that T-Mobile compares its prices with, the advertised 20% savings might not materialize if a Spectrum Mobile customer switches to T-Mobile. That would make the ad misleading.
The NAD recommends that T-Mobile discontinue the ad or modify it to include the names of the carriers that T-Mobile calls “the other big guys.” T-Mobile said that it was disappointed with NAD’s decision and plans on appealing it to the National Advertising Review Board (NARB). Keep in mind that T-Mobile does not have to follow the NAD’s recommendation. However, if a company fails to follow the NAD’s recommendation, the matter can be referred by the NAD to the Federal Trade Commission (FTC). The FTC can investigate and take action against deceptive ads.
