A look at how companies try to reach potential customers.
Advertising
T-Mobile told to stop with its ‘Save Up to 50%’ Home Internet claim
T-Mobile has been advised to stop implying that a consumer can save up to 50% on their home internet services compared to major competitors like Verizon. The recommendation comes from the National Advertising Division (NAD) of the Better Business Bureau (BBB) National Programs.
AT&T prevails in ad spat over Charter internet reliability claims
AT&T won its latest battle with Charter Communications over marketing claims, with the National Advertising Division (NAD) recommending the latter discontinue advertisements which call into question the reliability of AT&T’s internet service. The ruling followed AT&T’s challenge of a Charter ad for its Spectrum service. The commercial in question claimed Spectrum won against “telephone internet companies” in terms of providing reliable and glitch-free internet service.
FTC Looks to Modernize Its Guidance on Preventing Digital Deception
The Federal Trade Commission (FTC) is seeking the public’s input on ways to modernize the agency’s business guidance titled “.com Disclosures: How to Make Effective Disclosures in Digital Advertising.” First published in March 2013, this resource provides guidance to businesses on digital advertising and marketing. As digital deception grows in sophistication, some companies are wrongly citing the guides to justify practices that mislead consumers online.
Google Fiber told to drop speed, reliability claims after Charter challenge
Google Fiber agreed to alter its advertisements after the National Advertising Division (NAD) determined a number of its speed claims were unsupported, including the assertion that its service can provide “faster download speeds than you'd get with traditional cable.” The decision followed a challenge from cable player Charter Communications. In addition to the aforementioned claim, NAD also ruled against Google’s claims that it offers up to 77 times faster uploads and up to 12 times faster downloads.
Senators Introduce Competition and Transparency in Digital Advertising Act
Sens Mike Lee (R-UT), Amy Klobuchar (D-MN), Ted Cruz (R-TX), and Richard Blumenthal (D-CT) have introduced the Competition and Transparency in Digital Advertising Act. The bill would restore and protect competition in digital advertising by eliminating conflicts of interest that have allowed the leading platforms in the market to manipulate ad auctions and impose monopoly rents on a broad swath of the US economy.
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FTC Announces Tentative Agenda for May 19 Open Commission Meeting
Federal Trade Commission Chair Lina M. Khan announced that an open meeting of the Commission will be held virtually on Thursday, May 19, 2022. The following items will be on the tentative agenda:
FTC Takes Action Against Frontier for Lying about Internet Speeds
The Federal Trade Commission has moved to stop internet service provider Frontier Communications from lying to consumers and charging them for high-speed internet speeds it fails to deliver. Under a proposed order with the FTC and two California law enforcement agencies, Frontier will be prohibited from tricking consumers about its slow internet service and required to support its speed claims.
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CWA Urges Senate to Confirm Gigi Sohn to FCC with Six-Figure Ad Buy
The Communications Workers of America (CWA) launched a six-figure digital advertising campaign aimed at securing Gigi Sohn’s [Senior Fellow and Public Advocate at the Benton Institute for Broadband & Society] confirmation to the Federal Communications Commission.
Broadband-Only Households Rise Sharply
While homes that get over-the-air (OTA) TV content continue to grow slowly, the greatest change over the last three years has been with broadband-only (BBO) homes—comprising 27% of TV homes in Q4 2021, according to Nielsen. In 2018, the percentage was 9%. This has come largely at the expense of homes with traditional cable TV and other TV services—so-called "Cable Plus." These make up 57% of U.S. homes, down from 76% in the fourth quarter of 2018. The remainder are OTA homes—now estimated at 15%, up from 14% three years earlier.
T-Mobile home internet ads get mixed results in Charter challenge
In a win for T-Mobile over challenger Charter Communications, the National Advertising Division (NAD) of BBB National Programs determined that T-Mobile's "no data caps" claim for its Home Internet service was not misleading. NAD also found that T-Mobile's advertising “did not reasonably convey a disparaging message” that competing cable internet providers, including Charter, require long-term contracts and “exploding bills,” as compared to T-Mobile's Home Internet service.