Ad watchdog hits Verizon on home Internet claims
In a challenge raised by Charter, the National Advertising division recommended that Verizon change or discontinue certain ad claims for its home Internet service. #pressrelease
August 28, 2024
In a challenge brought by Charter Communications, Inc., BBB National Programs' National Advertising Division determined that Verizon Communications Inc. provided a reasonable basis for certain claims for its Verizon Home Internet but recommended that it discontinue or modify others.
Three primary services are included under Verizon Home Internet: Fios Home (using fiber-to-the-home), 5G Home (using mid-band and high-band 5G wireless), and LTE Home (using 4G LTE wireless). Fios Home is a wired service and 5G Home and LTE Home are fixed wireless access (FWA) internet services that connect to homes through Verizon's cellular network.
5G Claims
Verizon branded parts of its FWA service "5G Home" and "5G Home Plus." The National Advertising Division (NAD) considered the message reasonably conveyed by claims using the term "5G":
"5G" Home Internet
"5G-fast" speeds
"Game, stream & connect with the speed of 5G."
"[B]inge, game, and work at the speed of 5G."
NAD found that Verizon's advertisements do not perpetuate or reinforce any misconception that 5G refers to 5 Gbps. Therefore, NAD determined that Verizon's 5G claims were not misleading because the term "5G" describes the service accurately– home internet connected through 5G mobile technology.
Fast and Reliable Claims
Applying standards used for residential broadband internet, NAD determined that Verizon provided a reasonable basis that its services were "reliable" and that the following claims are substantiated:
Verizon Home Internet is "reliable" home internet.
Consumers will receive uninterrupted service with Verizon's FWA service offerings.
Consumers will receive consistent speeds throughout the day with Verizon's FWA service offerings.
However, NAD concluded that Verizon failed to provide a reasonable basis that Verizon Home Internet, which includes 5G Home and LTE, is "fast" in a context that equates those services with its broadband internet services.
Therefore, NAD recommended that Verizon modify the following "fast" claims to clearly and conspicuously disclose the service (Fios Home) for which the claim is supported:
Verizon Home Internet is "fast" home internet.
Verizon Home Internet is "fast . . . home internet so you can binge, game and work at the speed you need."
Verizon's FWA internet offerings provide internet access in the same manner as the wired internet services offered by Charter and other similar wireline ISPs.
Alternatively, Verizon may clearly and conspicuously disclose that its 5G Home and LTE Home services of its Verizon Home Internet provide internet access through a mobile wireless or cellular network and that speeds may vary due to factors affecting networks.
Stream Claim
Verizon's website claims "Verizon 5G Home is fast, reliable home internet so you can game, stream and connect the way you want." NAD determined that the claim reasonably conveys the message that there are no limitations on picture quality on what consumers can stream with Verizon's FWA internet option. However, the inability to stream in 4K is material information that directly contradicts the claim of being able to stream the way you want.
Accordingly, NAD recommended that Verizon modify the claim by clearly and conspicuously disclosing that certain limitations on playback resolution may apply depending on the tier of service.
No Data Limits and Data Caps Claim
Verizon's terms of service give it the right to limit the speeds of its highest data-using FWA customers. While Verizon characterizes data limitation ability as an abuse-prevention mechanism, it is nevertheless a data limitation. As a result, NAD found that the unqualified "no data limits" or "data caps" claims for Verizon's 5G Home Internet and LTE Home Internet plans are unsupported.
Therefore, NAD recommended that Verizon discontinue its "no data limits" and "data caps" claims or modify the claims to disclose its data limitation policy.
Read the full press release here.
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