Comcast had appealed a decision that the operator modify certain ad claims for Xfinity Mobile. A review board upheld that ruling, then referred the case to the FTC after Comcast opted not to comply.
A dispute centering on Comcast advertising claims for Xfinity Mobile, first raised by AT&T, is heading to the Federal Trade Commission (FTC).
The National Advertising Review Board (NARB), the appellate advertising body of the Better Business Bureau National Programs, said Wednesday it had referred the case to the FTC after Comcast declined to comply with recommendations to modify or discontinue certain advertising claims for Xfinity Mobile.
"Given Comcast's decision not to comply with the NARB panel's recommendations, NARB is referring the advertising to the FTC for possible enforcement action," the NARB said.
The case stems from a complaint lodged by AT&T about several marketing claims that Comcast applies to Xfinity Mobile, a service that relies on an MVNO deal with Verizon and Comcast's network of millions of Wi-Fi hotspots. It's been a successful combo so far – Comcast added 316,000 mobile lines in Q2 2023, extending its total to nearly 6 million. By comparison, AT&T added 326,000 new postpaid phone customers in the same period.
Following its review, the National Advertising Division (NAD) said it recommended that Comcast change some of its ad messaging, including claims that Xfinity Mobile is the "fastest mobile service," and to discontinue "most reliable," "highest ranked" and "best network" claims. NAD also suggested that Comcast "clearly and conspicuously" disclose that a Comcast broadband subscription is required for Xfinity Mobile.
Comcast appealed the decision, arguing that the Xfinity Mobile ads focus on the unique benefits of a service that is delivered through the combination of two networks. The cable op also argued that NAD's decision was inconsistent with previous cases addressing similar claims.
NARB later affirmed NAD's decision in its entirety, while also suggesting that Comcast modify its "fastest mobile service claim" to note that it's based on combined Wi-Fi and cellular speeds and that the claim is true only within Comcast's Wi-Fi footprint or when a customer is connected to Wi-Fi. The NARB panel also ruled that the use of a hyperlink on the Xfinity Mobile website to make any of the recommended disclosures "would not satisfy the conspicuous standard."
According to NARB, Comcast said it disagreed with the decision and that it "maintains that each of its claims is truthful and non-misleading."
Comcast also argued that "NARB disregarded relevant information and evidence concerning the network reliability Xfinity Mobile customers receive ... [B]ecause NARB's decision would prohibit Comcast from truthfully promoting the network that Xfinity Mobile customers receive, Comcast cannot comply with NARB's recommendation to discontinue these claims."
With the situation at an apparent impasse, the case now heads to the FTC.
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— Jeff Baumgartner, Senior Editor, Light Reading
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