A complaint was recently lodged by T-Mobile US Inc. (NYSE:TMUS) against its competitor Sprint Corp (NYSE:S), as both companies have been indulged in head-on-rivalry with each other. In accordance with these competitive sentiments present between the two companies, the former company i.e. T-Mobile US Inc. (NYSE:TMUS) made a complaint against the latter, in which Sprint Corp (NYSE:S) was accused of deploying exaggerated advertisements which surpass reality, for its promotion.
As a corollary of this complaint, National Advertising Division (NAD) carried out investigations in this regard. NAD is a state-authority with the responsibility of registering and scrutinizing all complaints related to the arena of advertisements. NAD carried out extensive investigations as a result of T0-Mobile US Inc.’s (NYSE:TMUS) complaint, and in doing so came across many such unrealistic claims of Sprint Corp (NYSE:S), and ordered that the company should avoid making any such unreasonable assertions in future.
These false and exaggerated statements can go a long way in misleading the public about Sprint Corp (NYSE:S) and its services. Some of these claims suggest that Sprint Corp (NYSE:S) is America’s newest network, full of innovations, providing the customers access to extremely fast data speed, like no other network.
Not only is the NAD scrutinizing into this matter, rather the self-regulatory group set up by the advertisement industry was also intrigued by Sprint Corp’s (NYSE:S) unrealistic claims which sound extremely far-fetched. In this regard, the industry advised the company that it should refrain from boasting that it alone is the best network which ensures 100% customer satisfaction and has been doing so for the last 6 years, in contrast to the remaining 43 industries.
The claims set forth by the company were also looked into by the investigating committee and it was eventually deduced that the message being broadcast by Sprint Corp. (NYSE:S) was overly far-fetched.
In response to Sprint Corp’s (NYSE:S) assertion of being the newest network, NAD stated that pulling apart an old network in an effort to modernize it, didn’t exactly count as ‘newest’ in their books. Moreover, Sprint Corp (NYSE:S) has boasted about its fast data speed and higher call quality. NAD deems this assertion to be alright, only if such innovations have indeed been made in the company’s existing network. However, if this is merely an advertisement play, with the sole intention of bringing down its competitors, then it clearly isn’t acceptable.
In response to these accusations, Sprint Corp (NYSE:S) has stated that it would look into the matter and work to replace all objectionable claims and assertions. The company further states that a large quantity of such accused matter had already been replaced. However, the spokesperson of Sprint Corp. (NYSE:S) refused to accept NAD’s allegations to be entirely true. He did not agree with this accusation that the company’s advertisements were far-fetched and misleading. He said that these advertisements were brought forward with the best of intentions, to honestly depict the various improvements made in the company’s network. Despite this, he assured NAD and other accusers that this critique would be taken in a positive manner and NAD’s recommendations would be deployed in all future advertisement campaigns by Sprint Corp (NYSE:S).
