"On October 27, NAD ruled that the AT&T advertising and press release violated Section 2.1(I) of the NAD/National Advertising Review Board (NARB) procedures. That procedure was that NARB participants are "not to mischaracterize any decision, abstract, or press release issued or use and/or disseminate such decision, abstract or press release for advertising and/or promotional purposes." In other words, using the decisions as fodder for advertising or marketing is off limits."
"AT&T's lawsuit claims that BBB National Programs sent a cease-and-desist letter regarding the advertising. The letter, AT&T says, demanded that the commercials and press releases be immediately and permanently pulled. The suit further claims that the NAD issued a nationwide press release recounting what it said was the violation of its procedures. It also claims that the letter implied AT&T had mischaracterized NAD's prior decisions about T-Mobile's advertising."
"AT&T maintains that the statements made in the advertising and press release are true and therefore protected by the First Amendment. "The notion that a court would prohibit a company from making true, non-misleading, and non-confidential statements to the public - on a matter of great concern to tens of millions of consumers - is anathema to the values embodied in the First Amendment. AT&T," the filing read."
Telecommunications industry self-regulation under BBB National Programs' NAD faced litigation when AT&T Mobility sued BBB National Programs. AT&T released a press release and television commercial claiming T‑Mobile had more NAD judgments than other carriers. On October 27, NAD ruled that those communications violated Section 2.1(I), which bars NARB participants from mischaracterizing or using NAD decisions, abstracts, or press releases for advertising or promotional purposes. AT&T alleges BBB sent a cease‑and‑desist demanding immediate permanent withdrawal and that NAD issued a nationwide press release implying mischaracterization. AT&T asserts the statements were true and First Amendment protected and seeks three‑count relief including a declaratory judgment and challenges to NAD procedures.
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