AT&T is suing Verizon in a federal district court in Georgia over TV ads that claim that AT&T has gaps in its coverage areas, Computerworld's Matt Hamblen reports. Verizon's ads suggest that coverage areas outside of AT&T 3G service, which are shown in maps in the ads in white, provide no service. Most of those are covered, AT&T says, albeit with somewhat slower speeds. "That's misleading and that's why we filed the lawsuit," says AT&T spokesman Mark Siege. The company is seeking an injunction to stop the ads, as well as receive unspecified damages. The ads are not …

Allison Linn rounds up a group of retail analysts who, by and large, believe that retailers just don't get what's going on with American consumers and the dramatic -- perhaps permanent -- shift in how and what they buy. "Retailers still don't have a full grasp of reality," says Burt P. Flickinger III, managing director of Strategic Resource Group. Shoppers haven't been this scared around holiday-shopping time in 50 years, Flickinger III says. Instead of giving shoppers what they want and need at a good price, retailers seem to be offering huge discounts on items they want to …

7-Eleven TV, a digital video network that will roll out to more than 6,200 stores during the next year, made its debut in 60 stores in California, Texas and Florida yesterday, Katy Bachman reports. The network is expected to eventually reach an estimated 190 million consumers. "This network will not only deliver relevant content but information on products and promotions that are of particular significance to the convenience store customer," says Kevin Elliott, vp of merchandising and logistics for 7-Eleven. He says it will also be an effective platform for point-of-sale product pitches. Programming runs in …

The targets are common business practices like drug company payments to doctors for speeches and consulting services, Natasha Singer reports.

The company forecasts a 20% increase in marketing expenses in fourth quarter, with additional rebates and incentives.

The health care bill wending its way through the House currently mandates that restaurant chains with more than 20 outlets post calorie counts as well as information about how the figures fit into recommended daily levels, Emily Bryson York reports. Section 2572, which contains the provision, is buried deep within the 1,990-page HR 3962, and was first uprooted by Politico.com. "We're very pleased that the nutrition information provision continues to garner bipartisan support, and we're pleased that the agreement is now moving forward in the House of Representatives," says Mike Donohue, vice president of media relations for …

Toyota executives are debating whether to expand the Prius nameplate into a marketing sub-brand for a broad family of low-emission, high-mileage hybrid vehicles, James B. Kelleher reports. But the idea is controversial within Toyota and a decision is more than a year away, according to Bob Carter, the group vp and gm of Toyota Motor Sales U.S.A. Carter supports the move. "Prius has become such an icon in the market that it is my desire, and the desire by many of us ... that we nurture Prius beyond one vehicle and more into a family of vehicles," he says. One …

IllyCaffè SpA, the high-end coffee maker based in Trieste, Italy, is going after the Starbucks crowd in the U.S. by signing contracts with cafes that agree to serve Illy exclusively and allow it to monitor quality control, Julie Jargon reports. The program is called "Artisti del Gusto," or Artists of Taste. At present, 28 shops operate under the certification in the U.S. and Illy plans to add 100 more in the next three years, as well as to expand into Canada and Mexico. The shops get Italian espresso machines, coffee cups, artwork, drink recipes, intensive training and instant cachet. Illy …