It’s always entertaining and informative when the big ISPs fight with each other. One recent battle comes from Verizon filing a complaint with the National Advertising Division (NAD) of the Better Business Bureau.
Verizon complained about Charter advertising that touted its cellular service as unlimited. Charter has been marketing both an Unlimited and Unlimited Plus cellular plan, and the advertisement for these plans implies that customers can use as much voice, data and texts as they want. The very name Unlimited implies to the average customer that there is no cap on usage.
As you would expect, this isn’t exactly true, and none of the cellular carriers, including Verizon, has a truly unlimited cellular data plan. In Charter’s case, data speeds are severely restricted once a customer reaches a monthly cap. There are also other limitations on data usage, such as the amount that can be used for tethering during a month.
The dispute went to NAD since the big carriers have all agreed to use NAD as the arbiter of disputes about advertising claims. This saves the carriers from taking each other to court, and the carriers all accept decisions made by NAD.
Interestingly, NAD decided that the Charter plans are unlimited since customers never get cut off entirely from using data. However, NAD asked Charter to fix its advertising to disclose that there are limitations placed on data usage after reaching a cap.
This particular tussle between Verizon and Charter is typical of the disputes that have been forwarded to NAD over the years. The telcos and cable companies keep a close watch on each other, and complaints are lodged when a carrier makes exaggerated marketing claims.
I predict we’ll see an uptick in advertising disputes as carriers react to being freed from regulation. The FCC clearly no longer regulates broadband as a result of the Sixth Circuit ruling that killed Title II regulation. My guess is this will embolden ISPs and cellular carriers to push the envelope in their advertising to the public.
There are some regulations that will stay on the books. For example, the Infrastructure Investment and Jobs Act created broadband labels, and the FCC can’t kill that requirement without action from Congress. But most ISPs have already buried these where customers can’t easily find them.
I love how NAD considers a 99.9% lie not enough of a lie to block.
‘unlimited’ = get an allocation and then get limited. I suppose this is a 75% lie
however
‘unlimited 5G’ = get an allocation and then get limited is a 99.999% lie.
The .001% here is that you still get all the signal so they’re still unlimited access to 5G radio waves, just doesn’t include any data with those radio waves.
Bad for the consumer, good for our business. Makes it easy to compete when cellular is constantly upsetting the general populace.
The moral of the story on any deal that seems to good to be true is… Read the fine print.