AT&T Ordered to Stop Misleading Satellite Coverage Ads Amid Rivalry with T-Mobile: A Detailed Breakdown

AT&T Ordered to Stop Misleading Satellite Coverage Ads Amid Rivalry with T-Mobile: A Detailed Breakdown
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AT&T Faces Ad Revisions After T-Mobile Complaint

AT&T has been instructed to halt its advertisements claiming that it already offers cellular coverage from space. This decision comes after T-Mobile filed a complaint with the advertising industry's self-regulatory system, operated by BBB National Programs. T-Mobile argued that AT&T's claims were misleading, as the carrier's satellite-to-cellular service is not yet available. The advertising review board, National Advertising Division (NAD), initially ruled against AT&T, a decision that was upheld upon appeal to the National Advertising Review Board (NARB).

AT&T’s Misleading Claims: The Backstory

The controversy centers around AT&T’s partnership with AST SpaceMobile, a company planning to provide smartphone services from low-Earth-orbit satellites. Although AT&T intends to offer Supplemental Coverage from Space (SCS), AST SpaceMobile's first batch of satellites is not scheduled to launch until September. Despite this, AT&T ran ads suggesting that its satellite coverage was already in place, which led to the complaint from T-Mobile. 

Changes to the "Epic Bad Golf Day" Ad

In response to the ruling, AT&T reluctantly agreed to revise its advertisements. The 30-second commercial in question, titled "Epic Bad Golf Day" and featuring Ben Stiller, originally depicted a satellite call during a golf mishap in the desert, accompanied by the Pixies' song "Where is My Mind." The ad included small text describing the satellite call as a "demonstration of evolving technology," but it was later updated to clarify that "satellite calling is not currently available."

AT&T’s History of Misleading Advertising

AT&T is no stranger to misleading advertising, having previously rebranded its 4G service as "5GE," which also faced scrutiny. In this latest case, the NARB concluded that phrases like "the future of help is an AT&T satellite call away" could reasonably be interpreted as suggesting that the technology was already available. In the revised version of the ad, AT&T modified the text to state that "the future of help will be an AT&T satellite call away," complying with the review board’s recommendations.

T-Mobile’s Stance on Advertising Integrity

T-Mobile's complaint highlighted the importance of truthfulness in advertising, stating that "the use of humor does not shield an advertiser from its obligation to ensure that claims are truthful and non-misleading." This case underscores the ongoing rivalry between major carriers and the increasing scrutiny on advertising practices within the industry.