AT&T under fire for advertising service which doesn't exist
AT&T has been ordered to stop running ads claiming it is already offering cellular coverage from space. The disputed ad, titled "Epic Bad Golf Day," features actor Ben Stiller making a satellite phone call from a remote location. AT&T will now air the commercial with explicit disclaimers. It plans to launch this service called Supplemental Coverage from Space (SCS) in collaboration with AST SpaceMobile, a rival of Starlink aiming to deliver smartphone services via low-Earth-orbit satellites.
T-Mobile's complaint leads to reprimand
The misleading nature of AT&T's advertisements prompted T-Mobile to lodge a complaint with the advertising industry's self-regulatory system, managed by BBB National Programs. In July, the BBB National Advertising Division (NAD) ruled against AT&T. This decision was later upheld by the National Advertising Review Board (NARB) after an appeal from AT&T. The NARB confirmed that it was "undisputed that AT&T does not currently offer SCS coverage to its cellular customers."
AT&T's response to NARB's ruling
In response to the NARB's ruling, AT&T has reluctantly agreed to revise its satellite-calling commercial with more explicit disclaimers. However, the company expressed disagreement with the decision. In a statement, AT&T said it "supports NARB's self-regulatory process and will comply with NARB's decision... However, we respectfully disagree with NARB's conclusion recommending that the commercial be discontinued or modified."
NARB's interpretation of AT&T's commercial
The NARB interpreted visuals in the commercial as implying that the call was being connected through a satellite relay. AT&T defended its use of humor in the ad, arguing that it would lead reasonable consumers to understand that the satellite service is still under development. However, this argument was rejected by both T-Mobile and the NARB.
A look at the disclaimers
The original ad included small text describing the depicted satellite call as a "demonstration of evolving technology." This week, the text was changed to clarify that "satellite calling is not currently available." The NARB stated, "Even assuming consumers will read [the disclaimer], one reasonable interpretation of 'evolving technology' is that the technology is currently available, albeit expected to improve in the future."
