National Advertising Division Recommends T-Mobile Discontinue Certain Comparative Savings Claims for its Mobile Telephone Service; T-Mobile to Appeal
New York, NY – May 19, 2025 – In a challenge brought by Verizon Communications Inc., BBB National Programs’ National Advertising Division recommended that T-Mobile US, Inc. 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 the National Advertising Division (NAD) that it modified the savings claims to explicitly reference streaming services in the claims themselves and modified its disclosures for the savings claim.
NAD determined that, despite T-Mobile having modified the savings claims to explicitly reference streaming services, one message that continues to be conveyed is that consumers who switch to T-Mobile from Verizon can save 20%, and that those savings are achieved through plan costs alone. NAD found that consumers are not likely to expect the value of ancillary benefits to be included in a savings comparison.
NAD also found that T-Mobile’s updated disclosures fail to clearly and conspicuously inform consumers that the 20% savings claim is based on the cost of the plan, additional optional fees for third-party streaming services, and is contingent on purchasing three lines of service at a specific tier.
In addition, NAD found that the three-line requirement disclosure in the modified advertising is not clear and conspicuous and further contradicts the message of the broad comparative savings claim.
NAD therefore recommended T-Mobile discontinue the challenged claims.
In its advertiser statement, T-Mobile stated that it “is disappointed with NAD’s decision and will appeal it.”
Appeals of NAD decisions are made to BBB National Programs’ National Advertising Review Board (NARB), the appellate-level truth-in-advertising body of BBB National Programs.
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.
During the challenge, T-Mobile informed the National Advertising Division (NAD) that it modified the savings claims to explicitly reference streaming services in the claims themselves and modified its disclosures for the savings claim.
NAD determined that, despite T-Mobile having modified the savings claims to explicitly reference streaming services, one message that continues to be conveyed is that consumers who switch to T-Mobile from Verizon can save 20%, and that those savings are achieved through plan costs alone. NAD found that consumers are not likely to expect the value of ancillary benefits to be included in a savings comparison.
NAD also found that T-Mobile’s updated disclosures fail to clearly and conspicuously inform consumers that the 20% savings claim is based on the cost of the plan, additional optional fees for third-party streaming services, and is contingent on purchasing three lines of service at a specific tier.
In addition, NAD found that the three-line requirement disclosure in the modified advertising is not clear and conspicuous and further contradicts the message of the broad comparative savings claim.
NAD therefore recommended T-Mobile discontinue the challenged claims.
In its advertiser statement, T-Mobile stated that it “is disappointed with NAD’s decision and will appeal it.”
Appeals of NAD decisions are made to BBB National Programs’ National Advertising Review Board (NARB), the appellate-level truth-in-advertising body of BBB National Programs.
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.