AT&T and the self-regulatory group BBB National Programs National Advertising Division late last week resolved a dispute over the television commercial "Ain't Our First Rodeo,"
which blasted competitor T-Mobile over its claims in its ads.
The self-regulatory group on Thursday retracted a demand to pull the spot, saying in a letter to AT&T that the
ad does not violate its rules or procedures.
In turn, AT&T on Friday withdrew its lawsuit against the watchdog.
The moves ended a legal
battle that began in late October, soon after AT&T launched a
30-second ad in which actor Luke Wilson calls T-Mobile "the master of breaking promises," and accuses it of being "caught up in
untruths."
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The ad shows Wilson displaying a mock tabloid with the headline "T-Mobile Most Challenged For Deceptive Ads," while the bottom of the screen reads: "Based on
advertising challenges of telecommunications providers brought by competitors from 2022 to 2025."
The spot didn't mention the National Advertising Division (NAD), 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 National Advertising division sent the company a cease-and-desist letter demanding the removal of both the commercial and press release. At the time, the self-regulatory
watchdog -- which hears challenges to ads by competitors and makes recommendations -- said its policies
prohibit parties to a case from issuing press releases regarding decisions, and from using decisions for advertising or promotional purposes.
AT&T in late October sued the
watchdog, alleging that its "inflammatory and baseless accusations" have "intimidated multiple TV networks into pulling AT&T’s advertisement."
The telecom asked
a federal judge to declare that the ad and press release don't violate the watchdog's procedures, and that the new campaign is protected by the First Amendment. The carrier specifically alleged in its
complaint that the statements in the commercial are accurate, adding that the self-regulatory group issues public statements summarizing its decisions regarding T-Mobile.
NAD
counsel said in the retraction letter that the group's rules and procedures don't prohibit television networks from broadcasting the ad or other "substantially similar" ads.
The watchdog added that the statements regarding T-Mobile "were based on publicly available information published by BBB National Programs."
A T-Mobile spokesperson said the
company was disappointed in the NAD's move, adding that it was "bad news for industry self-regulation and the integrity of the entire process."
The spokesperson added:
"AT&T’s claim that T-Mobile is 'the most challenged' advertiser when they themselves are the filer of most of the complaints is the height of hypocrisy and the reason that the NAD's reversal
is so sad for our industry."
T-Mobile recently declined to participate in an NAD review that would have examined AT&T's challenge to T-Mobile boasts regarding its 5G
service.
T-Mobile said at the time that it had "serious confidentiality concerns with any information that would have to be shared in an NAD proceeding initiated by
AT&T."