It’s one thing when a rival needles you in commercials. It's expected in business. But outright deception tactics to steal your customers is a no-no. At least, according to Verizon.
Carrier wars have ensued as they're now dragging T-Mobile to the courtroom. According to them, T-Mobile's claim that their plans can save families hundreds of dollars a year if they switch is misleading.
It's mostly because they compare the wrong prices. Specifically, comparing temporary promotional rates to Verizon’s full rates.
Verizon accuses T-Mobile of false advertising
T-Mobile has been running nationwide ads for months claiming that families who switch to their services can save over $1,000 a year compared to Verizon and AT&T. Their new Better Value plan is an example of such offers.
The longer the campaign ran, the more Verizon concluded it was deceptive. T-Mobile wasn't comparing real bills to real bills.
According to the lawsuit, as reported by Fierce Network, they only reach that figure by comparing their limited-time promotional pricing to Verizon’s full, undiscounted standard plan prices, which almost no Verizon customer actually pays.
For example, a family needs three lines. T-Mobile may offer Better Value promo for $140 per month, while Verizon Unlimited Ultimate normally costs $195 per month. That’s a $55 difference per month. Multiply that by 12 months, and you'll get $660 per year.
Using T-Mobile’s own numbers, the real plan-to-plan difference is $660, not $1,000. To reach $1,000+, T-Mobile then adds estimated values for perks like Netflix + Hulu, Satellite features, and others, which they claim Verizon leaves out.
These values assume the customer would pay for every one of those services separately, and pay full price for them elsewhere.
Verizon has strongly disputed this claim, pointing out that most of their customers already get satellite connectivity at no additional cost through partnerships with Apple and Skylo.
Both carriers initially took the issue to the National Advertising Division and the National Advertising Review Board. These bodies reviewed the ads and recommended that T-Mobile modify or discontinue certain savings claims.
However, NAD and NARB have no enforcement power, and Verizon again said that T-Mobile had in fact doubled down on their advertising since then.
The case is now before Manhattan federal court. Verizon is seeking an injunction to stop the ads entirely under the Lanham Act and New York business law.
T-Mobile is not shaken by Verizon's lawsuit
T-Mobile’s response has been unapologetic in the Verizon dispute. The carrier says it stands by its advertising and believes the savings it promotes are real, measurable, and fair once everything included in its plans is taken into account.
We’re thrilled that Verizon has finally conceded through this complaint that their customers can save hundreds and hundreds and hundreds when they switch to T-Mobile.
While we disagree on how much they save, the facts are clear: when benefits included with T-Mobile’s Better Value plan, which Verizon and AT&T make you pay for, are considered, the math adds up to more than $1,000 in annual savings.
T-Mobile
They also maintain that the details of what’s included in plans are clearly disclosed, and frame the legal challenges as frustration from rivals who are losing customers.
