The parent organization of the National Advertising Division (NAD) has retracted a cease-and-desist letter sent to AT&T over its television advertising that claimed rival wireless provider T-Mobile had promoted its services in a deceptive manner.
In a letter sent to AT&T’s corporate counsel on Thursday, an attorney for the BBB National Programs said the group was retracting its cease-and-desist letter that accused AT&T of violating the policies of its program. The Desk obtained a copy of the letter from a source late Friday afternoon.
The NAD helps certain companies, including AT&T and T-Mobile, self-regulate their advertising and promotions based on certain criteria. Companies can challenge each other’s promotional spots, and the NAD issues decisions that either upholds the promotions as valid or urges companies to amend them.
In October, AT&T launched a commercial ad spot featuring actor Luke Wilson that accused T-Mobile of breaking certain promises made to customers in its own marketing efforts.
“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.”
The spot included a fictitious newspaper that carried the headline “T-Mobile Most Challenged for Deceptive Ads.” Neither the TV spot nor a press release announcing the campaign mentioned the NAD or any specific decisions.
Within days, the NAD issued a cease-and-desist letter to AT&T, accusing it of violating a specific policy that prevents its members from using the outcome of its investigations in commercial spots. AT&T filed a federal lawsuit for declaratory relief, asking a judge to find that its advertisement didn’t violate the BBB National Programs’ rules.
On Thursday, BBB National Programs said it no longer took the position that AT&T’s ad spot violated the NAD’s rules and procedures, and that it was withdrawing its earlier cease-and-desist letter “in all respects.”
The organization now admits that AT&T’s commercial spot was based on publicly-available information about T-Mobile’s marketing claims, and not any specific decision that originated from the NAD. It also said NAD’s policies didn’t prevent television networks from airing AT&T’s national campaign. In court filings, AT&T complained that the NAD’s earlier action convinced some TV networks to pull the spot.
A spokesperson for the BBB National Programs has not returned a request for comment. In a statement, AT&T said the letter effectively resolved the situation, and it would move to voluntarily dismiss its legal case.
A copy of the letter is available to view by clicking or tapping here.
