AT&T has filed a lawsuit against the National Advertising Division (NAD), the advertising industry's self-regulatory body, instead of pulling its ads that slam T-Mobile. The NAD had previously found AT&T in violation of a rule by issuing a video advertisement and press release that used the NAD process and its findings for promotional purposes.
However, AT&T disputes the accusation, claiming that it didn't violate the rule. The carrier argues that the rule only applies to uses "for advertising and/or promotional purposes" and not to press releases issued by participants in the process. AT&T also claims that its press release about its new advertising campaign does not mention any particular NAD decision and therefore is not a violation.
The NAD had sent a cease-and-desist letter to AT&T, demanding that it stop using NAD decisions for promotional purposes. However, AT&T has refused to comply, citing the rule's ambiguity and arguing that the NAD has no legal basis to enforce its demand for censorship.
This lawsuit is part of a long-standing feud between AT&T and T-Mobile over misleading ads. Both carriers have been accused of deceptive advertising practices in the past, including false promises about data plans and cell phone coverage.
The NAD procedures state that companies participating in the system agree not to mischaracterize any decision or press release issued for promotional purposes. However, AT&T claims that it didn't mischaracterize its decisions and that the NAD's process is often slow and allows T-Mobile to air deceptive ads without meaningful consequences.
The outcome of this lawsuit could have significant implications for the advertising industry and the way companies approach self-regulation.
However, AT&T disputes the accusation, claiming that it didn't violate the rule. The carrier argues that the rule only applies to uses "for advertising and/or promotional purposes" and not to press releases issued by participants in the process. AT&T also claims that its press release about its new advertising campaign does not mention any particular NAD decision and therefore is not a violation.
The NAD had sent a cease-and-desist letter to AT&T, demanding that it stop using NAD decisions for promotional purposes. However, AT&T has refused to comply, citing the rule's ambiguity and arguing that the NAD has no legal basis to enforce its demand for censorship.
This lawsuit is part of a long-standing feud between AT&T and T-Mobile over misleading ads. Both carriers have been accused of deceptive advertising practices in the past, including false promises about data plans and cell phone coverage.
The NAD procedures state that companies participating in the system agree not to mischaracterize any decision or press release issued for promotional purposes. However, AT&T claims that it didn't mischaracterize its decisions and that the NAD's process is often slow and allows T-Mobile to air deceptive ads without meaningful consequences.
The outcome of this lawsuit could have significant implications for the advertising industry and the way companies approach self-regulation.