The National Advertising Division (NAD) of the BBB National Programs says it will refer a complaint submitted by AT&T about a T-Mobile advertising campaign to the Federal Trade Commission (FTC) and numerous state Attorneys General after the wireless provider failed to cooperate in its investigation.
The complaint centers around marketing on T-Mobile’s website and promotional spots run on YouTube and Facebook that tout the performance of the company’s 5G wireless network.
It wasn’t clear which promotional spots were the problem, or what AT&T complained about. The NAD is an organization that upholds the telecom industry’s promise to self-regulate its marketing and ads.
The NAD said T-Mobile affirmed its support for the program, but declined to participate in the review over its marketing because AT&T is suing the organization in federal court. AT&T’s lawsuit, first reported by The Desk, centers around a complaint lodged by the National Advertising Review Board (NARB), a unit of the NAD, that the wireless giant violated the policies of the BBB National Programs by using former NAD decisions against T-Mobile in its own promotions. The NAD doesn’t allow its decisions to be used for marketing purposes.
A spokesperson for the BBB National Programs declined to comment on AT&T’s lawsuit. But the case has blemished T-Mobile: By not participating in the probe involving AT&T’s complaint, the NAD said it will escalate the inquiry to the FTC and state AGs.
“We are disappointed that the NAD has made the decision to refer this matter,” a spokesperson for T-Mobile told reporters on Wednesday. “T-Mobile has long been and continues to be a strong supporter of the National Advertising Division (NAD) and self-regulation.”
The spokesperson continued: “AT&T has publicly stated in a federal lawsuit against NAD’s parent organization that AT&T does not believe it is bound by any of the rules or agreements that come with participation in proceedings before the NAD self-regulatory industry body.”
T-Mobile said it would normally cooperate with NAD investigations, but felt providing confidential information to the organization while it is being sued by AT&T was not in the company’s best interest.
“We believe the claim that is being challenged is well substantiated and true, but due to AT&T’s stated position, T-Mobile has serious confidentiality concerns with any information that would have to be shared in an NAD proceeding initiated by AT&T, which led T-Mobile to decline to participate in this specific proceeding pending the outcome of AT&T’s federal litigation,” the spokesperson affirmed.
