Charter Communications, Spectrum’s parent company, said it would change its advertisements claiming Verizon customers who switch to Spectrum Mobile will “save over $1,500 in their first year” following a recommendation from the third-party National Advertising Division.
Verizon challenged a commercial that compared two couples using the different mobile carriers. Both couples are shown to have two lines, unlimited data, and nationwide 5G. The ad then makes the $1,500 savings claim for Verizon customers who switch to Spectrum Mobile. The couple portraying Verizon customers are told they pay “way too much” for their service and decide to switch to Spectrum.
NAD, which is part of BBB National Programs, pointed out that the ad spotlights Spectrum Mobile’s lowest tier plan but doesn’t make it clear that it’s comparing it to one of Verizon’s pricier tier plan. The division also said the commercial omits that a customer needs Spectrum Internet to use Spectrum Mobile. Spectrum also agreed to modify other claims to “clearly and conspicuously” disclose the missing information.
The back and forth between the two underscores how competitive the wireless field has gotten, with Spectrum seeing success winning over new wireless customers — often at Verizon’s expense. In the fourth quarter alone, Spectrum added 546,000 wireless customers, a rare bright spot in a period that saw continued internet and video subscriber losses.
Verizon has had a rough time with keeping its subscribers over the last year, and only begun to regain its footing in the second half of 2023. Ironically, Spectrum utilizes Verizon’s wireless network to deliver its service.
According to the release, Charter said that while it “disagrees that its existing disclosures were insufficient” it “will comply with NAD’s recommendations to improve the disclosures it includes with its savings claim for Spectrum Mobile.”
Verizon wasn’t immediately available for comment.
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