Verizon Wireless sues T-Mobile, alleges false advertising

By Jonathan Stempel

NEW YORK, Feb 4 (Reuters) - Verizon Wireless sued T-Mobile on Wednesday, accusing its largest rival of false ​advertising and causing irreparable harm by promising consumers more ‌than $1,000 of annual savings if they switch cellphone carriers.

According to a complaint filed ‌in Manhattan federal court, T-Mobile exaggerated the alleged savings, sometimes by more than 100%, by comparing its promotional rates with Verizon's standard rates, and inflating the value of streaming, satellite connectivity and other ⁠benefits that "the other ‌guys leave out."

Verizon also said T-Mobile doubled down on savings claims that were "substantially identical" to claims that ‍the National Advertising Review Board, which oversees the U.S. system of advertising industry self-regulation, found unsubstantiated and misleading in 2025 and 2026.

The alleged deception ​includes not offering apples-to-apples comparisons of subscriber costs by understating ‌the savings that New York-based Verizon offers when it bundles various services, such as Netflix with HBO Max, or Hulu with Disney+ and ESPN+.

T-Mobile, based in Bellevue, Washington, had no immediate comment. Verizon did not immediately respond to requests for additional comment.

The ⁠lawsuit seeks unspecified 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. It also seeks ‍to halt the ⁠challenged ads.

Verizon had 146.9 million subscribers as of December 31, while T-Mobile had 139.9 million as of September 30, ⁠according to the companies' financial reports. AT&T Mobility ranked third, with 120.1 million ‌as of December 31.

(Reporting by Jonathan Stempel in New ‌York; Editing by Matthew Lewis)