The National Advertising Review Board (NARB) of BBB National Programs, has recommended that T-Mobile stop advertising its “switch and save” claims.
The NARB says that T-Mobile’s “plus streaming” price comparisons against AT&T and Verizon were unclear and could mislead consumers about actual savings. The decision comes after Verizon made a challenge through the National Advertising Division (NAD), saying that T-Mobile was making unsupported claims of offering cheaper plans than competitors. Verizon’s complaint was for claims made in a brochure, a press release, the T-Mobile Savings Calculator website, and two commercials (“Top Three plays of the Day” and “Holidays are Coming in Hot: Families: Save 20%”.)
The NARB has recommended that T-Mobile US stop using the following claims:
- “Switch and save versus AT&T and Verizon’s comparable plans plus streaming.”
- “Families can switch and save 20% vs. the other big guys plans plus streaming services.”
A panel reviewed T-Mobile’s addition of the phrases “plus streaming services,” or “plus streaming,” which T-Mobile says made it clear that their price comparison added the price of optional streaming services to the base price of Verizon or AT&T, while T-Mobile includes those services for free. The panel determined that the phrasing was confusing and unclear, agreeing with Verizon’s initial challenge through the NAD.
The panel has recommended that T-Mobile change its advertising to avoid implying the following:
- Every mobile plan offered by T-Mobile costs less than comparable plans offered by T-Mobile’s competitors, including Verizon.
- All consumers on all of T-Mobile’s plans will save money or save 20% when compared to consumers on competitors’ plans.
The NARB said that it would only recommend that T-Mobile change the wording of its claims, rather than discontinue the advertising altogether, as suggested by the NAD.
In its advertiser statement, T-Mobile stated that while it “disagrees with the panel’s decision,” it will “comply with the panel’s decision.”