T-Mobile is facing potential federal scrutiny after refusing to participate in an advertising review requested by AT&T. The National Advertising Division, an industry self-regulatory body, announced it’s referring the case to the Federal Trade Commission and state attorneys general.

According to PhoneArena, the dispute centers on T-Mobile’s advertisements claiming “superior 5G network capacity” compared to competitors. AT&T challenged these claims and asked the NAD to review the supporting data, but T-Mobile declined to participate in the process.

The carrier explained its decision by pointing to an ongoing federal lawsuit AT&T filed against BBB National Programs, the NAD’s parent organization. T-Mobile stated it has “serious confidentiality concerns” about sharing information in a proceeding initiated by AT&T given the lawsuit, and emphasized that AT&T has publicly claimed it’s not bound by NAD rules or agreements.

In typical cases, when one carrier challenges another’s advertising claims, the company provides supporting data to the NAD for review. By refusing to engage, T-Mobile forced the watchdog’s hand. The referral to federal authorities is the NAD’s way of maintaining the self-regulatory system’s integrity when companies won’t participate voluntarily.

The timing is notable given the fierce competition between the two carriers over network superiority claims. AT&T has been expanding its mid-band 5G network to compete with T-Mobile’s established footprint in that spectrum. For consumers trying to decide which carrier offers the best service, these advertising claims matter—which is exactly why the review process exists.

T-Mobile maintains the challenged claim is “well substantiated and true” and says it supports the NAD and industry self-regulation. Whether the FTC will take action remains to be seen, but the referral puts T-Mobile’s 5G capacity advertising under a federal microscope.

Source: PhoneArena