T-Mobile launched a countersuit against Verizon Wireless, accusing its larger competitor of using deceptive marketing to induce customers to switch carriers. The filing, made on a Friday night in Manhattan federal court, frames Verizon’s current advertising push as a scheme to draw consumers in with apparent savings and then sell them costlier options.
The counterclaim was submitted after Verizon filed its own lawsuit on February 4 that targeted T-Mobile advertisements promising consumers more than $1,000 in annual savings if they switched carriers. T-Mobile’s response centers on Verizon’s so-called "Better Deal" campaign, which invites customers to bring in bills from T-Mobile or AT&T Mobility and switch to Verizon for a purportedly better price.
T-Mobile argues that Verizon cannot deliver comparable service plans at the lower prices advertised, calling the promotion a ruse. The company highlighted aspects of Verizon’s campaign that include billboards and sales kiosks depicting historical figures - George Washington, Abraham Lincoln and Benjamin Franklin - shown with mouths agape as if astonished by 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 moreexpensive products and services," T-Mobile said.
The filing notes that Verizon had not immediately responded to requests for comment on Monday, including through its attorneys. In its initial complaint, Verizon accused T-Mobile of comparing promotional prices to Verizon’s standard rates and of inflating the value of services that, in Verizon’s words, "the other guys leave out." T-Mobile denied any wrongdoing in response to Verizon’s challenge.
Both carriers are pursuing similar remedies in their suits: they seek court orders to stop the disputed advertisements, treble damages under the federal Lanham Act for alleged intentional false advertising, and damages for violations of New York statutes prohibiting unfair competition and deceptive trade practices.
The filings also reiterate basic corporate details and subscriber counts disclosed in the companies' financial reports: T-Mobile is headquartered in Bellevue, Washington, while Verizon is based in New York. As of December 31, Verizon reported 146.9 million subscribers and T-Mobile reported 142.4 million. AT&T ranked third with 120.1 million subscribers.