National Advertising Division Recommends T-Mobile Discontinue “Families Can Save 20% Every Month Versus AT&T and Verizon” Claim
New York, NY – January 16, 2025 – 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 its claim for 20% savings on monthly wireless services.
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 “Holidays Are Coming in Hot” commercial, in which T-Mobile advertises that prospective customers save 20% every month in service costs compared to AT&T and Verizon.
At issue for NAD was whether T-Mobile’s commercial informs consumers that the 20% savings claim is calculated by including the cost of third-party streaming services on top of the price of AT&T’s and Verizon’s monthly wireless plans.
NAD determined that the context of the challenged commercial does not put consumers on notice that streaming services are connected with T-Mobile’s price comparison claim. Because the main message of the commercial is price savings, without reference to optional add-on streaming services, NAD determined that the small on-screen print disclosure that references streaming services as the basis of comparison is insufficient and contradicts the main message of the commercial.
Accordingly, NAD recommended that T-Mobile discontinue the claim in the challenged advertising that “families can save 20% every month versus AT&T and Verizon.” NAD noted that nothing in its decision precludes T-Mobile from making truthful and not misleading price comparisons about the value of the streaming services it includes with its plans.
In its advertiser statement, T-Mobile stated that although it “disagrees with NAD’s conclusions regarding the challenged advertising,” it will comply with NAD’s decision and “take NAD’s recommendations into account with respect to its future advertising.”
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