Verizon Wireless sues T-Mobile, alleges false advertising

By Jonathan Stempel

NEW YORK, Feb 4 (Reuters) - Verizon Wireless VZ.N sued T-Mobile TMUS.O 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 T.N ranked third, with 120.1 million as of December 31.