Nextel Communications Inc. was able to support marketing claims for its Nationwide Direct Connect service, but modified pricing claims following a ruling by the National Advertising Division of the Council of Better Business Bureaus Inc.
NAD said the case was brought to the attention of the self-regulatory forum by Verizon Wireless and challenged a Nextel advertisement in the Newark Star Ledger on June 3 claiming that its $50 Direct Connect “Free Incoming” plan includes “Unlimited Push to Talk Walkie-Talkie” calls “Across Jersey. Across the Country.” Verizon Wireless argued that the advertisement was inaccurate because there were no qualifiers or disclosures of the material terms and conditions in close proximity to the price and service claims.
Verizon Wireless argued that the “coast-to-coast” claim for Nextel’s Nationwide Direct Connect service was inaccurate in that there was no text disclosure alerting consumers to the fact that Nextel’s PTT service was available to only about 82 percent of the U.S. population.
Citing a previous NAD decision regarding Qwest Communications International Inc., Nextel claimed its coverage supported the coast-to-coast claim in that it provides service in every state along the Pacific seaboard and serving 96.27 percent of the population on the Pacific Coast as well as every state along the Atlantic seaboard and serving 92.43 percent of the population on the Atlantic Coast. Nextel also asserted that its network along with affiliate Nextel Partners Inc. reaches approximately 252 million people or nearly 88 percent of the total U.S. population.
Despite Verizon Wireless’ assertions, NAD found that Nextel’s coast-to-coast coverage claim for its Nationwide Direct Connect service was supported based on the “significant geographical and population coverage of the advertised service.”
Verizon Wireless also claimed that the advertisement included the phrase “Across Jersey. Across the Country” but did not include the $10 additional fee required to access Nationwide Direct Connect in the $50 per month rate plan associated with the advertisement. In addition, Verizon Wireless claims the advertisement did not plainly describe what was included in the “unlimited push to talk walkie-talkie” calls, that only include incoming PTT calls or if the outgoing PTT call is made to someone within the user’s region.
NAD determined that Nextel’s pricing claim was confusing with respect to the PTT service and that the disclosure information provided was inadequate. NAD recommended that Nextel “more accurately explain the services that are included in the monthly fee in a clear and conspicuous manner.”
In a statement to NAD, Nextel said it was pleased that the forum found its coverage claims to be substantiated and that it has already implemented recommended changes.
NAD recommended in a case last month brought to its attention by Nextel that Verizon Wireless modify its “anytime, anywhere” claims for the carrier’s “In-Network” calling plans to avoid consumer confusion.
