A BBB National Programs National Advertising Division (NAD) decision reminds advertisers that advertising claims must properly align with evidence of data performance advantages to avoid a regulatory challenge.
Advertising at Issue
AT&T advertised fiber internet service, depicting scenarios where slow internet speeds ruined important moments. The ads portrayed a child struggling to connect to a video call for a birthday celebration and a professional presentation disrupted by slow upload speeds. AT&T’s messaging claimed that its Internet 1000 fiber service is “20 times faster” than cable. AT&T maintained that the claim was factually accurate when comparing its service to Comcast’s Gigabit Xfinity offering.
NAD’s Findings
The NAD acknowledged the objective fact that fiber internet offers faster speeds than cable, but it concluded that AT&T’s advertising overstated the practical consequences of speed differences. It determined that the advertisements conveyed the message that cable internet is so unreliable that videoconferencing and large file uploads routinely fail. In the dispute, Comcast presented evidence that videoconferencing apps and file uploads do not require speeds approaching the maximum available through cable internet service.
The NAD agreed with Comcast and ruled that the advertising exaggerated the limitations of cable internet and mischaracterized the implications of the speed differential. While the performance claim regarding speed was accurate, the advertising was misleading because it did not represent the extent of the problem it purported to solve.
Proper Comparative Advertising
When comparative claims highlight a deficiency in a competing product or service, the depiction of that deficiency must be proportional to the evidence. Advertisers need to ensure that “the extent of the problem is not exaggerated, and the advertiser’s product or service solves the problem.” Comparative advertising claims may be susceptible to challenges, especially where emotional storytelling implies consequences that is out of proportion to the objective evidence.
Performance data must align with advertising claims—and claim substantiation research ensures that specific messages conveyed in advertising are not misleading. Properly conducted consumer perception studies help advertisers evaluate whether advertising accurately reflects the real-world impact of product differences.
IMS Legal Strategies conducts advertising claim substantiation research that supports comparative claims that don’t overstate competitors’ weaknesses. Discover how IMS can help advertisers mitigate regulatory risk while communicating product advantages.
