Verizon challenges AT&T's iPhone 16 Pro ad, and an ad board agrees

The National Advertising Division recommends AT&T change its claim, but the carrier is appealing the decision.

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AT&T is in some hot water over its latest iPhone 16 Pro ad campaign. A national advertising watchdog says the claim that "everyone" can get a free phone is misleading, but AT&T is gearing up to fight the recommendation.

What's the deal with AT&T's "free" iPhone ad?


If you’ve seen an ad from AT&T saying you can "Learn how everyone gets iPhone 16 Pro on us," you might want to read the fine print. Verizon, of all companies, initiated a challenge against the claim, and the National Advertising Division (NAD) has stepped in.

The NAD, which is part of the BBB National Programs, took issue with the word "everyone." In their view, the ad suggests that every single person who signs up with AT&T is eligible for a free iPhone 16 Pro. The reality, as is often the case with these carrier deals, is that the offer is only good for customers who subscribe to specific—and usually more expensive—unlimited plans.

The NAD found this to be a "material" piece of information that needs to be disclosed way more clearly. They've recommended that AT&T either change the ad to avoid this message or make the plan requirements impossible to miss. In response, AT&T says it will appeal the decision.

Why does this carrier ad drama even matter?


The battle between AT&T, Verizon, and T-Mobile is relentless, and these "free phone" promotions are their primary weapon for poaching customers. The catch is almost always the same: the phone isn't truly free. Its cost is paid out in monthly bill credits over 24 or 36 months, which effectively locks you into a contract. And, as this case highlights, you almost always have to be on one of their pricier premium plans to even qualify.

The irony here is that Verizon, a company known for its own complex promotions, is the one that filed the complaint. It just goes to show how cutthroat the competition is. This isn't just about one ad; it's about gaining any possible advantage in a marketing war where the lines are often blurry. For consumers, it’s a frustrating cycle that makes it difficult to compare offers and understand what you’re actually signing up for.

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Have you ever fallen victim to advertisement claims such as this one from AT&T?

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54.08%
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45.92%


It's the same old story


Frankly, I’m not surprised by any of this. The word "everyone" is doing some seriously heavy lifting in that ad, and it’s clearly designed to get you excited before you dig into the terms and conditions. It's a game of semantics that carriers have been playing for years, and it's exhausting for anyone just trying to get a straightforward deal on a new phone.

While I understand the need for catchy advertising, this feels intentionally vague. I'm glad the NAD called them out on it, because clarity is always better for the consumer. Whether AT&T's appeal will be successful remains to be seen, but this whole situation is a perfect reminder to always read the fine print before signing a three-year agreement for a "free" device. It rarely, if ever, is.


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