• by Wendy Davis , 6 hours ago

Wireless company T-Mobile has declined to participate in an ad industry self-regulatory program that would have examined AT&T's challenge to T-Mobile boasts regarding its 5G service.

As a result, the self-regulatory watchdog BBB National Programs' National Advertising Division (NAD) has referred T-Mobile to the Federal Trade Commission and state attorneys general, and will notify platforms where T-Mobile's claims appeared.

The claims at issue include a statement that T-Mobile's 5G service offers 40% more 5G capacity than competitors.

T-Mobile's refusal to participate -- and the NAD's decision to refer the company to outside bodies -- are related to a dispute between AT&T and the NAD over the telecom's use of prior NAD rulings involving T-Mobile.

That dispute began in October, when AT&T launched a 30-second ad in which Luke Wilson called T-Mobile "the master of breaking promises," and accused it of being "caught up in untruths."

Wilson also displayed a mock tabloid with the headline "T-Mobile Most Challenged For Deceptive Ads," while the bottom of the screen read: "Based on advertising challenges of telecommunications providers brought by competitors from 2022 to 2025.

That ad doesn't mention the NAD by name, but an accompanying press release stated that the watchdog "asked T-Mobile to correct their marketing claims 16 times over the last four years."

One day after AT&T unveiled the ad, the NAD demanded that the carrier remove both the commercial and press release. The watchdog said at the time that its policies prohibit parties to a case from issuing press releases regarding decisions, and from using decisions for advertising or promotional purposes.

AT&T then sued BBB National Programs in federal court in Texas, alleging that the group "intimidated multiple TV networks into pulling AT&T’s advertisement."

AT&T alleged in its complaint that the commercial is accurate, and that the ad and press release don't reveal any information that wasn't already public. The lawsuit is pending, and BBB National Programs is expected to file a response to the complaint by December 22.

T-Mobile said Thursday it is disappointed in the NAD's decision to refer the new matter. The company also said it supports the NAD, but has concerns about confidentiality due to AT&T's lawsuit.

"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 company said.