T-Mobile is currently facing scrutiny over its marketing claim that customers can save 20 percent by switching from Verizon. The National Advertising Division (NAD), a part of BBB National Programs, recently ruled that the carrier’s advertisements are misleading and should be discontinued. This decision challenges T-Mobile’s assertion that customers receive significant savings solely by changing providers.
The controversy began when Verizon filed a complaint questioning the accuracy of T-Mobile’s advertising. The NAD reviewed multiple materials including a “Save on Every Plan” brochure, commercials, a press release, and T-Mobile’s Savings Calculator website, all promoting the 20 percent savings claim.
T-Mobile responded by updating its ads to clarify that the savings include perks such as free streaming services, not just lower plan prices. Despite these changes, the NAD concluded that the ads still mislead customers by implying that the savings come exclusively from cheaper plans, without the additional benefits factored in.
According to BBB Programs, “most people don’t expect the value of third-party streaming services to be included in a price comparison.” The NAD emphasized that T-Mobile’s updated fine print was insufficient and not easy to understand.
The 20 percent savings depends on having multiple lines and includes costs related to streaming perks, important details that were not clearly communicated, leading to potential customer confusion. Because of this, the NAD recommended that T-Mobile stop using the 20 percent savings claim altogether.
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Despite the NAD’s ruling, T-Mobile expressed disappointment and plans to appeal the decision through the National Advertising Review Board (NARB), which reviews such appeals. The company maintains that their advertising is transparent and fair.
For customers, this situation highlights the need for transparency in wireless advertising, especially when plans already include complex pricing and hidden fees. Consumers expect straightforward information about savings without hidden conditions or confusing add-ons.
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Disclaimer: This article is based solely on information provided by the sources cited. No additional assumptions or opinions have been added to maintain accuracy and objectivity.
