Key Points
- AT&T issued a press release last week featuring a TV spot that chastises T-Mobile for alleged misrepresentations in advertising.
- A self-regulating body that scrutinizes commercial marketing says their determinations were improperly used by AT&T in their promotions.
- The National Advertising Division has a policy that prohibits participating companies and organizations from using investigation outcomes for promotional purposes.
A group that helps telecommunication service providers self-regulate their commercial advertising and promotions says wireless giant AT&T violated its policies by promoting an unfavorable decision involving a rival in a press release.
On Friday, the National Advertising Division (NAD) of the BBB National Programs said AT&T improperly used the findings of past NAD investigations to promote itself over a wireless competitor. Specifically, AT&T was accused of issuing a press release and a commercial television spot that “used the NAD process and its findings for promotional purposes.”
The NAD investigates complaints made by AT&T and other participating telecoms about advertising that could be construed as deceptive or misleading. The organization operates the National Advertising Review Board (NARB), which issues recommendations that most companies follow, including orders to modify or remove problematic messaging in advertising.
The NAD didn’t point to any specific press release or TV spot, but The Desk can confirm that the press release at issue is one AT&T issued on October 23, which included a short commercial called “Ain’t Our First Rodeo” featuring actor Luke Wilson.
Neither the press release nor the commercial spot mention the NAD or its NARB, but the TV advertisement included a fake newspaper that bore a giant headline reading “T-Mobile Most Challenged for Deceptive Ads.”
“AT&T’s been carrying America’s calls since 1876; when you’ve been around that long, you can spot a hustle coming from a mile away,” Wilson says in the spot. “T-Mobile is the master at breaking promises. While T-Mobile stays caught up in untruths, AT&T keeps building what matters: America’s most reliable network.”
As part of the NAB’s process, participating organizations are required to adhere to a policy that, among other things, prevents them from using the outcome of the NARB’s decision-making process in commercial advertisements or other types of service promotions.
“The integrity and success of the self-regulatory forum hinges on the voluntary agreement of participants in an NAD proceeding to abide by the rules set forth in the BBB National Programs’ Procedures,” a spokesperson for the NAB said in a statement e-mailed to The Desk on Friday. “As a voluntary process, fair dealing on the part of the parties is essential and requires adherence to both the letter and the spirit of the process.”
The spokesperson continued: “AT&T’s violation of its agreement under the Procedures and its misuse of NAD’s decisions for promotional purposes undermines NAD’s mission to promote truth and accuracy of advertising claims and foster consumer trust in the marketplace.”
AT&T, T-Mobile and Verizon are the three largest operators of commercial wireless telecom networks in the country. All three have lodged complaints with the NAD over problematic commercial spots over the past few years.
None of the companies have come out unscathed in complaints filed by their competitors, and T-Mobile is no exception. That said, the Magenta-themed wireless network has emerged victorious in complaints filed against some of its peers, and the NAD has occasionally upheld T-Mobile’s promotional materials when competitors lodge complaints against it.
One recent decision that went against T-Mobile involved a complaint filed by AT&T over claims made about an iPhone promotion — not its wireless network — in a spot that featured rap artist Snoop Dogg and National Football League (NFL) quarterback Patrick Mahomes. Then, the NAD found T-Mobile’s claim that customers could save more by purchasing the iPhone through them compared to AT&T and Verizon wasn’t supported by clear and conspicuous disclosures about specific wireless line requirements customers needed to purchase in order to get the discounts.
At the time, T-Mobile said it was “disappointed” with the outcome of the investigation and planned to appeal to the NARB. But the company ultimately did pull the promotion from its YouTube page and stopped running it on TV a short time later.
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