AT&T Sues Ad Watchdog Over Criticizing T-Mobile Ads

AT&T has initiated a lawsuit against the National Advertising Division (NAD) over its criticism of T-Mobile’s advertisements. The carrier argues that the NAD’s rules should no longer apply to its communications following the conclusion of previous NAD proceedings.

Background of the Dispute

At the core of AT&T’s argument is the timing of its press release. The company contends that the rule banning references to NAD decisions applies only for a limited time after a ruling is issued. AT&T stated, “NAD now takes the remarkable position that any former participant in an NAD proceeding is forever barred from truthfully referencing NAD’s own public findings about a competitor’s deceptive advertising.”

Criticism of NAD’s Handling of T-Mobile

AT&T criticizes the NAD for its perceived inaction regarding T-Mobile’s advertising practices. The lawsuit claims that NAD’s slow processes have allowed T-Mobile to broadcast misleading ads without facing significant repercussions. “Over the past several years, NAD has repeatedly deemed T-Mobile’s ads to be misleading, false, or unsubstantiated,” AT&T noted.

• AT&T alleges that T-Mobile delays remedies through extensions.
• The company suggests NAD has failed to refer continuous violations to the Federal Trade Commission (FTC).

Previous Incidents of Misleading Advertisements

Both AT&T and T-Mobile have faced scrutiny for misleading advertising in the past. T-Mobile previously promised not to raise prices on specific plans but did so later. Similarly, AT&T has been called out for marketing its 4G LTE service as “5GE” and falsely claiming it offered cellular coverage from space.

The lawsuit also argues that the NAD’s press release wrongly implied that AT&T mischaracterized previous NAD decisions regarding T-Mobile’s deceptive ads. However, NAD maintains that the ruling was based on AT&T’s use of its decisions for promotional purposes rather than any mischaracterization.

This legal confrontation highlights ongoing tensions between AT&T and T-Mobile in the competitive telecommunications sector. Both companies have a history of controversial advertising tactics, which could influence public perception and regulatory scrutiny.