Verizon Wireless and T-Mobile have settled lawsuits accusing each other of deceptive advertising practices related to consumer savings. The companies filed a stipulation of dismissal in Manhattan federal court on Friday, ending a legal battle that included a preliminary injunction against T-Mobile's "Save Over $1,000" campaign.
The resolution of these lawsuits removes legal uncertainty for two major wireless carriers and sets a precedent for how advertising claims about savings and competitor comparisons can be made in the highly competitive mobile market.
Verizon Wireless and T-Mobile have settled lawsuits accusing each other of deceiving consumers through advertising campaigns that promised significant savings. The companies filed a stipulation of dismissal on Friday in Manhattan federal court, ending a legal dispute that had been ongoing since February.
Verizon had sued T-Mobile, alleging that its ads misled customers by promising savings of over $3,700 over five years compared to Verizon and AT&T, and suggesting savings of up to 20% against "the other big guys." This lawsuit led to a preliminary injunction issued by U.S. District Judge Lewis Kaplan in Verizon's favor, blocking T-Mobile's "Save Over $1,000" campaign.
T-Mobile, in its countersuit, contended that Verizon's own advertising, which featured historical figures, was misleading because Verizon could not guarantee customers a "better deal."
As of June 30, Verizon reported having 147 million subscribers. T-Mobile had slightly fewer subscribers before adjusting its reporting metrics this year.