AT&T Gets a Wrist Slap for Advertising a Satellite Calling That Doesn't Exist
AT&T faced criticism for promoting its unlaunched satellite calling service, SCS. The Better Business Bureau's NAD recommended clearer ads, but its rulings lack legal binding and financial penalties, limiting effectiveness.
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AT&T has faced criticism for advertising a satellite calling service, Supplemental Coverage from Space (SCS), that is not yet available. The company has been promoting this service, which would allow users to make calls outside cellular tower range using low Earth orbit satellites. However, while AT&T has a partnership with AST SpaceMobile to develop this service, it has not yet launched, leading to complaints from competitors like T-Mobile. The Better Business Bureau's National Advertising Division (NAD) reviewed the situation and recommended that AT&T cease its misleading advertisements. In response, AT&T agreed to modify its ads to include clearer disclaimers about the service's availability. Despite this, NAD's rulings are not legally binding and lack financial penalties, often resulting in minimal consequences for companies engaging in false advertising. This incident is part of a broader pattern of telecom companies facing scrutiny for misleading marketing practices, with NAD's role primarily serving to mitigate regulatory actions rather than enforce accountability.
- AT&T advertised a non-existent satellite calling service, SCS, leading to complaints from competitors.
- The Better Business Bureau's NAD recommended AT&T stop misleading advertisements, which the company agreed to modify.
- NAD rulings are not legally binding and lack financial penalties, limiting their effectiveness.
- This incident reflects ongoing issues with false advertising in the telecom industry.
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