Electronics

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Can You Really Make Remote Satellite Calls on AT&T?

Last week was a bad week for AT&T. They had a massive data breach that affected all their ~110-million customers, exposing calling and texting records. (Here’s an FAQ about the incident.) Also last week, some of their advertising came under scrutiny by the Better Business Bureau.

The BBB case was about a commercial that began airing in April that shows Ben Stiller on the top of a mountain where his golf ball landed. He is shown making an urgent satellite call on his regular AT&T phone to a golf pro for advice.

T-Mobile filed a complaint with the Better Business Bureau’s National Advertising Division (NAD) complaining that the service shown in the advertisement does not actually exist now and the commercial misleads people into believing that they can make calls even in really remote places.

*MOUSE PRINT:

This is the unreadable, faint, ambiguous, half-second disclosure that AT&T made in the commercial at the 47-second mark:

Evolving technology

NAD examined the facts of the case and decided that one message conveyed by the commercial was that this satellite service was currently available to AT&T customers when in fact it is a planned service for the future.

What was missing, NAD says, was a clear and conspicuous disclosure saying that the service was not currently available. And if AT&T didn’t want to do that, they should discontinue that claim, the BBB ruled.

Well, old Ma Bell didn’t agree, and it is appealing the decision to the National Advertising Review Board.

What do you think watching that commercial? Does it give the impression that this satellite service is available now?

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Home Depot Sued Over Fake Regular Prices

In the past, we have talked about class action lawsuits where it is alleged that a clothing retailer used inflated regular prices to give customers the impression that their products were currently being offered at a great, low sale price. Now come two straight-shooting Texas consumers claiming that The Home Depot has been making exaggerated savings claims too by jacking up the so-called “regular” price of major appliances to levels at which they never or rarely ever sold. (See lawsuit.)

One of the consumers bought a Samsung gas dryer for $798 — that he thought was at a 33-percent discount from the $1199 “strikethrough” price. The other consumer bought a top loading Samsung washer for $578 that he was led to believe was usually $899. In the seven months since he purchased the washer, for example, his lawyers say it never sold for the $899 “regular” price.

In fact, they checked a variety of major appliances at Home Depot tracking their prices for months.

*MOUSE PRINT:

Washer sale price history

In this example, they tracked a washer like this one for four months. At no time in their checks was it ever off-sale or close to the $999 so-called regular price shown.

The lawyers say that The Home Depot engaged in unfair business practices, misrepresentations, and broke a specific regulation that specifically prohibits sellers from “making false or misleading statements concerning the reasons for, existence of, [and] amounts of price reductions.”

Time will tell if this case has legs, although MrConsumer has little doubt that the company uses strikethrough higher prices to make shoppers think they are getting a bargain.

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Metro’s $20 Home Internet Has No Catches?

Metro by T-Mobile is a prepaid cell service provider (formerly Metro PCS) that also offers 5G home internet. In this commercial that began running last month, they promise an unbelievable deal — only $20 a month for internet service. And they say there are no catches and no “exploding bills.”



Click arrow to play commercial

No catches? Really?

*MOUSE PRINT:

Metro fine print

In order to get the $20 internet service you have to (1) qualify for the federal Affordable Connectivity Program (ACP), (2) buy a monthly cell phone plan from Metro, (3) pay $25 the first month not $20, (4) sign up for autopay, and (5) be able to access the 5G service which is only available in certain cities/areas.

The federal program provides a $30 a month discount to those with households whose income is no more than 200% of the federal poverty level or if at least one person is on Medicaid, Section 8, or one of several other social welfare programs. Metro’s advertised $20 monthly rate already reflects that $30 discount.

On top of all that, this federal program is winding down this week and will no longer accept applications after February 7, 2024! The money for existing enrollees is expected to run out by May. And then, contrary to the Metro’s promise of “no exploding bills,” subscribers’ monthly bills will likely more than double.

Despite the FCC’s January 11 announcement of the end of the ACP program, Metro continued to run the commercials for their $20 internet service at least through January 26.

We asked Metro’s PR folks if it was fair to orally advertise “no catches” (1) when there were so many qualifications only disclosed in fine print, and (2) when the vast majority of viewers will not be eligible for the advertised price. The company responded in relevant part:

We are in the process of replacing this ad prior to the last day of sign ups. {A] key goal of this campaign [is] … to help educate millions of Americans … about a more affordable, flexible option for home internet. Of course, all the advertising always noted that ACP was eligible for “qualifying customers” in larger font.

I’m sorry, the net impression created by that ad is that Metro itself is offering $20 internet with no strings attached. The requirement of first needing to be approved for a federal program is anything but clearly disclosed (and certainly not in large type). It’s great if a company wants to promote a federal program to help lower income people with their bills, but just come out and say that’s what it really is.

In our view, then, this ad is extremely misleading as presented. We’ve asked the National Advertising Division (NAD) of Better Business Bureau National Programs to review the case.

What do you think of advertising like this?