AT&T has filed a lawsuit against the National Advertising Division, the advertising industry's self-regulatory body, after it demanded the carrier stop using NAD rulings in promotional materials against T-Mobile. The suit challenges the watchdog's cease-and-desist order, claiming it violates free speech and misapplies its own rules. This dispute arises amid a history of misleading ads from both telecom giants.
On October 30, 2025, AT&T sued the BBB National Programs’ National Advertising Division (NAD) in the US District Court for the Northern District of Texas. The lawsuit follows NAD's finding that AT&T violated self-regulatory rules by issuing a video advertisement and press release that referenced NAD processes and findings for promotional purposes targeting T-Mobile.
NAD, which handles complaints about false and misleading ads to avoid government intervention, sent AT&T a cease-and-desist letter. The watchdog stated that AT&T's actions constituted a "direct violation" by making representations about a competitor's participation in the self-regulatory process. AT&T's campaign portrays T-Mobile as "the master of breaking promises," claiming in ads and a press release that NAD asked T-Mobile to correct marketing claims 16 times over the last four years.
AT&T disputes the violation, arguing in the lawsuit that the rule against referencing NAD decisions applies only for a short period after each ruling, not indefinitely. "We stand by our campaign to shine a light on deceptive advertising from our competitors and oppose demands to silence the truth," AT&T said in a press release. The carrier seeks a court declaration that it has not violated NAD procedures and that NAD lacks legal basis to enforce its demand. It also claims NAD's accusations have intimidated TV networks into pulling the ads.
AT&T further criticizes NAD's process as slow, allowing T-Mobile to air deceptive ads without timely consequences and failing to refer repeated violations to the Federal Trade Commission. "Over the past several years, NAD has repeatedly deemed T-Mobile’s ads to be misleading, false, or unsubstantiated," the lawsuit states. NAD procedures require participants to agree not to mischaracterize decisions or use them for advertising and promotional purposes, and not to issue press releases regarding decisions.
Both carriers have histories of misleading ads, including T-Mobile's unfulfilled price promises and AT&T's past claims about 5GE service and space-based coverage. NAD declined to comment on the lawsuit.