Charter agrees to tweak ads touting savings when mobile subs switch from Verizon

Charter Communications tends to refer to Verizon in glowing terms when execs are asked to comment on the cable operator's MVNO relationship with the mobile carrier.

But, at their core, Verizon and Charter are still competing for mobile customers. And it's clear the companies did not see eye to eye on some Charter ads for Spectrum Mobile claiming that customers can save gobs of cash by defecting from Verizon.

Following a recommendation from the National Advertising Division (NAD), Charter Communications reluctantly agreed to alter certain claims in Spectrum Mobile ads that Verizon customers will "save over $1,500 in their first year" if they switch to Charter's mobile service. The NAD recommendation, which calls on Charter to discontinue the claim or modify the claim by adding or improving certain disclosures, stems from a challenge raised by Verizon.

Charter said it intends to retain its claims but will tweak some of the disclosures used in the ads.

Verizon objects to savings claims

Verizon's challenge lodged with NAD centers on Spectrum Mobile ads comparing costs between two couples who are using different mobile carriers – "George and Heidi" with Verizon, and "Dan and Tina" with Spectrum Mobile. One of the ads overlays large print stating that Spectrum Mobile subs "Save over $1,500 first year."

Related:Charter Super Bowl ad takes a shot at T-Mobile Home Internet

For a frame of reference, this 60-second version of the ad (via iSpotTV) does not include the large print with the challenged claim, but it does include a few other claims that Verizon objected to.

NAD concluded that while Charter has a green light to compare the pricing of two plans at different tiers within the carriers' offerings, in this context the ad must be clear that the lowest tier Spectrum Mobile plan is being compared with a plan that is not Verizon's lowest plan. NAD said it also determined that the disclosure explaining that Charter's home broadband service is required for Spectrum Mobile "is not clear and conspicuous."

The ad watchdog also recommended that Charter discontinue the claim that "with Verizon, George and Heidi pay way more for their two unlimited lines," along with other claims related to certain pricing and savings, such as Spectrum Mobile has "no hidden fees" and "no added taxes." NAD further recommended that Charter "avoid conveying the message that Verizon does not offer a lower price tier."

In its advertiser statement, Charter said that while it "disagrees that its existing disclosures were insufficient," the operator "will comply with NAD's recommendations to improve the disclosures it includes with its savings claim for Spectrum Mobile."

Related:Charter, Comcast take aim at T-Mobile's FWA ads

Charter hits 7.76 million mobile lines

Mobile has been a bright spot for Charter. The company added 2.5 million lines for full-year 2023, ending the year with 7.76 million mobile lines.

Charter has generally expressed happiness with its MVNO agreement with Verizon. However, Charter is starting to deploy CBRS spectrum to keep MVNO costs in check in high-usage areas.

Speaking on Charter's Q4 2023 earnings call earlier this month, Charter CEO Chris Winfrey noted that the operator had deployed "thousands" of CBRS units in one "large" market (believed to be Charlotte, North Carolina), with plans to extend CBRS deployments to an additional market later this year.