National Advertising Division Recommends T-Mobile Discontinue or Modify Advertising for Free iPhone and 20% Savings Claim; T-Mobile to Appeal
New York, NY – November 18, 2024 – In a Fast-Track SWIFT challenge brought by competitor AT&T Services, Inc., BBB National Programs’ National Advertising Division recommended that T-Mobile US, Inc. discontinue or modify its advertising offering a free iPhone and 20% savings on monthly wireless services to better disclose the material conditions of the offer.
Fast-Track SWIFT is an expedited process designed for single-issue advertising cases brought to the National Advertising Division (NAD). AT&T challenged T-Mobile’s “Top Three Plays of the Day” commercial, in which T-Mobile advertises that prospective customers will be able to receive a free iPhone 16 Pro and save 20% monthly in service costs compared to other leading wireless service providers.
The commercial features Twitch influencer Kai Cenat, NFL player Patrick Mahomes, and Snoop Dogg, who says, “Now at T-Mobile.com get the new iPhone 16 Pro ON US and families can save 20% every month versus the other big guys.” The details of the free iPhone offer appear onscreen briefly before being replaced by an image of the 20% savings claim.
NAD determined that T-Mobile’s advertising reasonably conveys the message that consumers who choose T-Mobile will receive both a free iPhone 16 Pro and save 20% versus AT&T and Verizon. NAD found this broad message was not properly qualified by the on-screen disclosures and recommended T-Mobile discontinue or modify the advertising to better disclose the material conditions of each offer.
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. This press release shall not be used for advertising or promotional purposes.
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