T-Mobile countersues Verizon over alleged false ad promises

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NEW YORK — T-Mobile countersued Verizon Wireless, accusing its largest rival of engaging in “bait-and-switch” advertising to induce consumers to switch cellphone carriers.

The lawsuit followed Verizon Wireless’ own February 4 lawsuit challenging T-Mobile ads promising consumers more than $1,000 of annual savings if they switched carriers.

In a Friday night filing in Manhattan federal court, T-Mobile said Verizon’s promise of a “better deal” if consumers brought in their T-Mobile or AT&T Mobility bills and changed carriers is a ruse because Verizon cannot offer comparable service plans at lower prices.

Part of the campaign includes billboards and kiosks featuring George Washington, Abraham Lincoln and Benjamin Franklin, with mouths agape in astonishment at Verizon’s offer.

“The Better Deal Campaign is a classic ‘bait and switch’ by which Verizon lures many consumers through the door with a false promise of savings and then tries to upsell them on more expensive products and services,” T-Mobile said.

Neither Verizon nor its lawyers immediately responded to requests for comment on Monday.

In its lawsuit, Verizon accused T-Mobile of comparing its promotional rates with Verizon’s standard rates, and inflating the value of services that “the other guys leave out.” T-Mobile denied wrongdoing.

Both lawsuits seek to halt the challenged ads, triple damages for alleged intentional false advertising under the federal Lanham Act, and damages for violating New York laws against unfair competition and trade practices.

T-Mobile is based in Bellevue, Washington, and Verizon is based in New York.

Verizon and T-Mobile respectively had 146.9 million and 142.4 million subscribers as of December 31, according to the companies’ financial reports. AT&T ranked third with 120.1 million.

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Reporting by Jonathan Stempel.