AT&T falsely promised “everyone” a free iPhone, ad-industry board rules

AT&T falsely promised “everyone” a free iPhone, ad-industry board rules

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AT&T loses another ad-board judgment simply a week after taking legal action against the company.

AT&T shop in New York City on November 18, 2024.


Credit: Getty Images|wdstock

AT&T has actually been informed to stop running advertisements that wrongly assure all consumers a complimentary iPhone. The rebuke originated from the marketing market’s main guard dog simply a week after AT&T took legal action against the company over a various marketing disagreement.

BBB National Programs’ National Advertising Review Board (NARB) “has actually suggested that AT&T Services, Inc. customize its marketing to prevent communicating an incorrect message relating to eligibility for an iPhone gadget deal,” the group, which runs the advertisement market’s self-regulatory system, stated today.

Verizon started the case by challenging AT&T’s “Learn how everybody gets iPhone 16 Pro on us” claim. BBB National Programs’ National Advertising Division (NAD) ruled in favor of Verizon in September 2025. AT&T appealed however lost the difficulty in the NARB choice revealed today.

“The NARB panel concurred with NAD’s conclusion that the challenged marketing, on its face, communicates an incorrect message that everybody ‘gets’ a totally free phone and does not clarify the message by divulging a product constraint to the deal of a totally free mobile phone in a clear and noticeable way,” the group stated.

In truth, the deal was just for AT&T consumers on specific strategies, leaving out consumers with inexpensive strategies. “The panel advised AT&T customize its marketing to prevent communicating the message that everybody is qualified for AT&T’s totally free mobile phone deal, or to plainly and notably reveal that customers to worth strategies are not qualified or otherwise explain the degree of strategy eligibility,” the NARB statement stated.

The NAD’s September choice stated “the term ‘everybody’ suggests everyone, without exception,” and helpfully pointed out the Merriam-Webster meaning of “everybody.”

AT&T took legal action against board after it required advertisements be stopped

The judgment isn’t an extremely prompt one considered that AT&T began making the iPhone 16 deal over a year earlier, and the iPhone 17 is now offered. It might trigger AT&T to utilize various phrasing in future advertisements. In a marketer’s declaration released with the judgment, AT&T stated it “supports NARB’s self-regulatory procedure and will adhere to NARB’s choice.”

AT&T took legal action against BBB National Programs recently after the group required that AT&T stop utilizing its judgments for marketing and marketing functions. The dispute comes from an advertising campaign in which AT&T represented itself as an apotheosis of sincerity while calling T-Mobile “the master of breaking guarantees.”

AT&T’s claim slammed the NAD for its sluggish choice procedure, stating that it permitted T-Mobile to air misleading ads without significant repercussions. AT&T obviously benefited in a comparable way considered that the NARB judgment came by a year after the iPhone 16 release.

Business that take part in the self-regulatory procedure consent to guidelines consisting of a restriction on utilizing NAD and NARB choices for “marketing and/or marketing functions.” The NAD stated that AT&T broke the guidelines “by releasing a video ad and news release that utilize the NAD procedure and its findings for advertising functions.”

The AT&T news release stated the NAD “asked T-Mobile to fix their marketing declares 16 times over the last 4 years,” and an AT&T business including Luke Wilson stated T-Mobile has actually dealt with more obstacles for misleading advertisements from rivals than all other telecom companies because time. AT&T’s claim protecting the advertising campaign stated the business didn’t break the guideline due to the fact that it didn’t point out any particular choices and asked the court for a statement that “NAD has no legal basis to implement its need for censorship.”

AT&T declared advertisement was actually real

AT&T and T-Mobile both have a history of deceptive ads, and the most recent NARB choice contributes to AT&T’s journal. The advertisement on AT&T’s site mentioned, “Learn how everybody gets iPhone 16 Pro on us when you sell your old iPhone in any condition.”

“Focusing on the words ‘everybody gets,’ Verizon argued to NAD that the challenged marketing interacted a specific message– that all AT&T customers are qualified for the trade-in deal– which it asserts was actually incorrect due to the fact that just customers to ‘certifying’ AT&T strategies are qualified. Verizon likewise argued that the ad interacted a similar deceptive message that all AT&T consumers were qualified for the trade-in,” the NARB choice stated.

While AT&T divulged the deal limitations, Verizon argued that the disclosure was unclear and noticeable. Verizon stated– and the NAD concurred– that the expression “everybody gets” recommends everybody will get a complimentary phone, not that everybody “can get” a totally free phone if they sign up for AT&T’s more costly strategies.

AT&T declared the advertisement was actually real since it did not state that everybody “will” get the complimentary phone. “Rather, according to the marketer, the challenged language interacts that all consumers, existing or brand-new, can get approved for the deal and advises consumers to ‘discover’ the information about the trade-in chance,” the NARB stated.

AT&T argued that the word “find out” makes it clear there are limitations on the deal. The NAD disagreed, stating that the “find out how” expression “precedes the word ‘everybody,’ recommending everybody is qualified to get a phone, not that everybody can discover how to get a phone.”

AT&T likewise sent the outcomes of a client study, arguing that it showed consumers seeing the advertisement comprehended the deal’s restrictions. The NAD chose that the study was methodologically unsound, while the NARB stated that both AT&T and Verizon provided “possible” analyses of the outcomes.

Panel: Buyers of affordable strategies most likely deceived

After hearing AT&T’s and Verizon’s arguments, the NARB panel chose “that the challenged marketing, on its face, communicates an incorrect message and even more does not clarify the message by divulging a product restriction to the deal of a totally free mobile phone in a clear and noticeable way.”

The panel likewise stated it is worried that the customers most thinking about AT&T’s more affordable strategies, which do not included the totally free phone, would be the most vulnerable to being encouraged by the totally free deal.

In addition to stating it “will adhere to NARB’s choice,” AT&T stated in its marketer’s declaration that “we value NARB’s recommendation that the customer study in this matter plausibly supports the conclusion that the challenged marketing is genuine and not deceptive. While we respectfully disagree with NARB’s suggestion that the marketing be customized, we will take that suggestion into account in the future.”

In an extra declaration offered to Ars, AT&T stated, “We will abide by the NARB’s choice. T-Mobile, as we stated in our claim, declares to play by the guidelines however in truth has actually gamed the NAD system to keep their advertisements on the air for months, even after they’ve been discovered to be deceptive, incorrect, or unverified.”

In another case choice in September, the NAD advised that AT&T customize or terminate claims associated with an “AT&T Guarantee” that didn’t have clear disclosures about the quantity of time it takes AT&T to repair network failures and for how long a blackout need to last before the assurance works. AT&T stated it would abide by the judgment.

In August 2024, AT&T was rebuked for an advertisement that incorrectly declared the provider was currently providing cellular protection from area. It has actually likewise gotten in difficulty for marketing 4G LTE service as “5GE” and making deceptive guarantees of unrestricted information.

Jon is a Senior IT Reporter for Ars Technica. He covers the telecom market, Federal Communications Commission rulemakings, high speed broadband customer affairs, lawsuit, and federal government guideline of the tech market.

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