Ad Alert

Spectrum Mobile

Inquiry finds price comparison uses wireless carrier’s lowest tier plan but not one of its competitors.

Charter Communications has agreed to modify the advertising claim that consumers who switch wireless carriers from Verizon to Spectrum Mobile “save over $1,500 in their first year” after an inquiry found the price comparison uses Spectrum Mobile’s lowest tier plan but not Verizon’s.

The National Advertising Division, which investigated Charter’s savings claim after receiving an advertising challenge from Verizon, said in a press release on Wednesday:

NAD considered whether a consumer interested in maximizing savings would reasonably assume that the comparison involves the two least expensive or entry-level plans. NAD concluded that while Charter may compare the pricing of two plans at different “tiers” within the carriers’ offerings, in this context, it must be clear that the lowest tier Spectrum Mobile plan is being compared with a plan that is not Verizon’s lowest tier plan.

NAD recommended that Charter clearly and conspicuously disclose the plans that serve as the basis of the price comparison. (NAD also determined that the disclosure that consumers must have Spectrum Internet to take advantage of the Spectrum Mobile offer is not clear and conspicuous.)

While this commercial does not include the challenged claim, it features a few others that NAD recommended Charter discontinue or modify, including “Only $29.99/mo for 12 mos,” “No Hidden Fees” and “No Added Taxes.”

Charter agreed to comply with NAD’s recommendations.

Find more of our coverage on wireless carriers here.

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