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Tag: BBB

  • NAD Supports Some T-Mobile 5G Claims, Disputes Others

    NAD Supports Some T-Mobile 5G Claims, Disputes Others

    The National Advertising Division (NAD), a division of BBB National Programs, has sided with T-Mobile on some of its advertising claims, while disputing others.

    The NAD is a branch of the BBB that helps ensure accuracy in advertising by providing dispute resolution and self-regulation. The challenge to T-Mobile’s advertising claims about its 5G service was lodged by Verizon.

    The NAD found that T-Mobile’s claims that its 5G is faster than its 4G, or competitors’ 4G was accurate. Similarly, the NAD found that T-Mobile’s claims that its 5G service offered better coverage than other providers’ 5G was also accurate.

    In spite of those wins, the NAD did recommend that T-Mobile alter or discontinue other claims. For example, it recommended T-Mobile stop implying its 5G was superior to 4G in other ways, such as reliability. Similarly, the NAD “recommended that T-Mobile discontinue the challenged claim that its 5G service is generally available in locations that have traditionally been challenging for cellular service (or disclose, clearly and conspicuously, the typical performance of T-Mobile’s 5G).”

    The NAD also recommended T-Mobile stop using demonstrations that implied other carriers’ 5G coverage footprint was as small as a city bench. The NAD also recommended T-Mobile stop comparing coverage to Verizon’s in the “Rock Stadium in Miami shortly before the Super Bowl and the related implied claim that T-Mobile’s current 5G network consistently provides no signal loss, decrease in signal strength, or reversion to 4G LTE service”

    This is just the latest spat between the carriers, as each tries to check the others’ advertising. The NAD recently ruled against Verizon, and the BBB’s National Advertising Review Board (NARB) upheld an unfavorable NAD ruling against AT&T. T-Mobile has said it will appeal the recommendation. We will provide an update once the NARB rules.

  • BBB Checks Verizon On Misleading 5G Claims

    BBB Checks Verizon On Misleading 5G Claims

    The BBB’s National Advertising Division (NAD) has called Verizon out for ads that make misleading claims about its 5G coverage and speed.

    Verizon has been rolling out its 5G network, focusing specifically on the high-band mmWave variety. mmWave has the fastest speeds, measured in gigabits. Unfortunately, it also has the worst range and penetration, requiring base stations or repeaters every couple hundred meters. As a result, mmWave is only suitable for heavily populated areas.

    Despite these limitations, Verizon’s commercials might lead a person to believe its network is far more widely available than it really is. Not only is it only available in select cities, but Verizon’s 5G is only available in certain parts of those select cities. That hasn’t stopped Verizon from saying “people from midtown Manhattan to downtown Denver can experience what your 5G can deliver.”

    Similarly, Verizon’s advertising makes it seems as though the fastest speeds are available everywhere its 5G network is accessible. Ultimately, the NAD found that Verizon’s message was unclear and could cause consumers to draw the wrong conclusions.

    “NAD noted that to the extent Verizon wishes to promote the current availability and performance of its 5G network to consumers across the nation – including people who live in cities and towns across the country that may not receive Verizon 5G coverage for months, if not years – Verizon should ensure that its advertising clearly and conspicuously communicates to consumers the relevant, material limitations of its current network.”

    Verizon said that, while it doesn’t agree with the NAD’s recommendation, it will abide by it and adjust its advertising accordingly.

  • AT&T Will Drop Misleading ‘5G Evolution’ Branding—Under Protest

    AT&T Will Drop Misleading ‘5G Evolution’ Branding—Under Protest

    AT&T will stop using its “5G Evolution” branding after the National Advertising Review Board (NARB) found it misleading.

    The NARB and the National Advertising Division (NAD) are divisions of the BBB National Programs. T-Mobile had challenged AT&T’s marketing claims, bringing its complaint to the NAD.

    At the heart of the issue was AT&T’s use of the label “5G Evolution” to describe souped up 4G LTE. The company tried to further clarify/muddy the issue by calling it “The First Step in 5G.” In fact a blog post in 2018 by Andre Fuetsch, president of AT&T Labs and Chief Technology Officer, is filled with back-and-forth marketing speak to give the impression that “5G Evolution” is 5G, without actually crossing the line and saying something that would be a blatant lie.

    For example, Fuetsch writes: “We’re laying the 5G network foundation with 5G Evolution and LTE-LAA. In technology terms, that means we’re upgrading cell towers with LTE Advanced features like 256 QAM, 4×4 MIMO, and 3-way carrier aggregation. These technologies serve as the runway to 5G by boosting the existing LTE network and priming it for the future of connectivity. We can enable faster speeds now, and upgrade to 5G when it’s ready.”

    As can be seen by that paragraph, Fuetsch practically writes himself into the verbal equivalent of a pretzel in an effort to tout “5G Evolution” as 5G; all the while technically acknowledging it’s really 4G LTE; all while, at the same time, pointing out it’s the runway to 5G.

    Unfortunately, this kind of semantic gymnastics is nothing new for AT&T. In 2019, the company agreed to a $60 million settlement over misleading claims it made about its unlimited data plans. Similarly, in 2014, the company settled to the tune of $105 million for deceptive billing practices.

    In this latest instance, the NAD had recommended AT&T stop using the branding, a decision that the wireless carrier appealed to the NARB. In its decision the NARB has upheld the NAB’s previous decision:

    Agreeing with NAD’s findings and recommendations, the NARB panel determined that both claims will mislead reasonable consumers into believing that AT&T is offering a 5G network and recommended that the claims be discontinued. At NAD and on appeal, it was not disputed that the AT&T network is not a 5G network. The NARB Panel agreed with NAD’s analysis and concluded that the term “Evolution” is not likely to alert consumers to the fact that the service is not 5G. The Panel noted that the current prevalent technology in wireless is 4G LTE, and LTE stands for “evolution.” Thus, consumers may well interpret “Evolution” in the challenged claims as signifying that AT&T’s technology has already evolved into 5G.

    Further, the Panel agreed with NAD’s conclusion that the addition of “The First Step in 5G” does not cure the concern that consumers could reasonably take away the message that beginning 5G technology is delivered. The Panel noted that a reasonable consumer could conclude that the reference to “The First Step to 5G” was the advertiser’s way of promoting a 5G network, while promising an even more robust 5G network at a later time, especially since the slogan is being used in conjunction with “5G Evolution.”

    To no one’s surprise, AT&T disagreed with the findings, but has indicated it will comply with them.

  • BBB Warns About Online Payday Lenders

    The Better Business Bureau is warning people about the practices and claims of some online payday lenders.

    "Desperate times are leading people to the Internet to apply for payday loans and many are falling deeper into debt after getting tangled up with a lender who has zero regard for the law," said Stephen A. Cox, President and CEO of the Council of Better Business Bureaus.

    "Unlike a payday loan that you might get from a local business, online payday loans require your bank account number and, as a result, the borrower is at the mercy of the lender as more money than they counted on is withdrawn from his or her account."

    Online-Lenders Hundreds of people have complained to the BBB after signing up for a payday loan on sites like OnceClickCash, 500Fastcash and rbloans. Consumers complaints said they agreed to what they thought was a one-time payday loan, usually a few hundred dollars to be paid off in two weeks. They provided their bank account information to the lender and the money was then deposited.

    The arrangement leads to a debt spiral.  All of the subsequent payments went toward paying off recurring finance charges and never toward the principal. As a result, consumers report paying two and three times the amount of the original loan and still having the same amount of principal to payoff.  One Massachusetts woman who received a loan from Ace Cash Services said she made over $1,700 in payments to payoff a $225 loan.

    Many consumers were surprised to hear that the online lender was not licensed by the state and charged interest rates well over what was allowed by their state laws. When confronted, the lender usually responds they don’t have to follow state or federal laws, claiming they are based in another country or on a Native American reservation.

    "The bottom line here is that if you are handing over your bank account information online to get a payday loan without doing your research, you are setting yourself up to pay hundreds and even thousands of dollars more than you bargained for," added Cox.