In Fast-Track SWIFT Case, National Advertising Division Recommends Advertiser Claims be Modified or Discontinued

The National Advertising Division of BBB National Programs recommended that Visible Services LLC, a subsidiary of Verizon Communications, Inc., modify or discontinue pricing claims associated with its prepaid wireless service plan.

T-Mobile US, Inc., a rival wireless carrier, had challenged Visible’s claims through NAD Fast-Track SWIFT, an expedited NAD challenge process designed for single-issue advertising cases.

Visible offers mobile wireless service on the Verizon network with unlimited talk, text, and data to consumers for a prepaid monthly price. For a single line of Visible service, the standard monthly price is $40 per month after the first month of service. After the first month, however, consumers can receive an ongoing additional “Party Pay” price discount for up to $15 per month by joining a group (or Party) of other Visible subscribers, which reduces the consumer’s monthly price for a single line of Visible wireless service to as low as $25 a month. A Party can consist of any Visible subscribers and does not need to be the consumer’s family or friends.

T-Mobile challenged pricing claims made by Visible in a television commercial and several online and social media advertisements. NAD determined that the claim that a consumer can obtain a “single line” for as low as $25 per month with “no family needed” refers expressly to a “single” line and tells consumers that no group membership is required. However, to receive the advertised monthly Party Pay discount the consumer must join or form a Party of other Visible subscribers through the Party Pay program.

Therefore, NAD recommended that Visible discontinue the challenged pricing claim or modify it to:

Either include in the main claim the condition that a consumer must join a Party through the Party Pay program to receive the monthly discount upon which the $25 advertised monthly price is based; or
Discontinue the claim “single line” and disclose clearly and conspicuously and in close proximity to the pricing claim that joining or forming a Party of other Visible subscribers through the Party Pay program is a condition of obtaining the advertised monthly price for a single line of wireless service.
NAD noted that nothing in its decision precludes Visible from making truthful and non-misleading claims comparing the Visible plan with Party Pay to family plans or other competing wireless service plans.

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Visible argued that the challenge was not appropriate for a Fast-Track proceeding, however, NAD determined that the challenge was appropriate for Fast Track SWIFT because it presented a single issue relating to the accurate expression of Visible’s pricing claims about the monthly price and related terms at which a consumer can obtain a single line of wireless service from Visible.

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