**AT&T Rebuked by Advertising Watchdog for Misusing Industry Self-Regulation in Ad Campaign Against T-Mobile**
AT&T, one of the United States’ largest wireless carriers, has recently come under fire from the ad industry’s self-regulatory body for violating rules regarding the use of its findings in advertising campaigns. The controversy centers on AT&T’s latest marketing offensive against rival T-Mobile, which the National Advertising Division (NAD) of BBB National Programs says crossed an important ethical line.
**NAD’s Role and AT&T’s Alleged Violation**
The National Advertising Division operates as an industry self-regulatory forum, established to help ensure truth and fairness in U.S. advertising. Its procedures are designed to allow companies to resolve disputes over potentially misleading ads without resorting to government intervention or litigation. Companies that participate in NAD’s process agree not to mischaracterize or use NAD’s decisions for promotional purposes. This is critical to maintaining the integrity and credibility of the self-regulatory system.
On Friday, the NAD announced that AT&T had “violated Section 2.1(I)” of its procedures by issuing a video advertisement and a press release that referenced NAD’s findings for promotional gain. Specifically, AT&T used the self-regulatory process to claim the moral high ground over T-Mobile, touting the number of times T-Mobile had been asked by NAD to correct its advertising. The NAD responded by demanding that AT&T immediately remove all related promotional materials and halt any further dissemination.
**Threat to the Self-Regulatory System**
The NAD’s rebuke of AT&T was unusually public and stern. The watchdog asserted that AT&T’s actions threatened the “integrity and success” of the self-regulatory process, which depends on voluntary cooperation and adherence to the rules. The NAD warned that using its findings as marketing ammunition undermines its mission to foster accurate advertising and build consumer trust in the marketplace.
A spokesperson for the NAD confirmed that it issued a cease-and-desist letter to AT&T on October 24, the day after the contentious ad campaign launched. While such a letter could be a precursor to legal action, the NAD declined to speculate on what further steps might be taken if AT&T does not comply.
**AT&T’s Campaign Against T-Mobile**
AT&T’s campaign, fronted by actor Luke Wilson, positions the company as a champion of honesty, directly accusing T-Mobile of misleading consumers. In its press release, AT&T claimed it was “launching a bold new campaign to stand up for consumers by squashing T-Mobile’s untruths and setting the record straight.” AT&T COO Jeff McElfresh alleged that T-Mobile has repeatedly exaggerated the size and capabilities of its wireless network in advertising.
The press release also highlighted that the NAD had called out T-Mobile 16 times in the past four years for questionable marketing claims—more than the entire consumer electronics and financial services industries combined, according to AT&T. The company argued that it was taking action to earn consumer trust