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Verizon Wireless has filed a false advertising lawsuit against T-Mobile, alleging its rival made misleading claims about potential savings for consumers who switch carriers. The complaint, submitted to Manhattan federal court on Wednesday, accuses T-Mobile of promising customers more than $1,000 in annual savings through deceptive comparison practices.
According to the legal filing, T-Mobile exaggerated potential savings by comparing its promotional rates against Verizon’s standard pricing rather than equivalent offerings. The New York-based carrier claims these inflated comparisons sometimes overstated savings by more than 100 percent.
False Advertising Claims and Regulatory History
Verizon’s lawsuit highlights that T-Mobile has allegedly continued making savings claims despite previous regulatory scrutiny. According to the complaint, the National Advertising Review Board found substantially similar claims unsubstantiated and misleading in both 2025 and 2026. The advertising industry self-regulatory body’s prior determinations appear central to Verizon’s false advertising case.
The complaint specifically challenges how T-Mobile calculated the value of various services in its savings estimates. Verizon alleges its competitor inflated the worth of streaming services, satellite connectivity, and other benefits by claiming “the other guys leave out” these features when making price comparisons.
Bundling Discounts at Center of Dispute
A key issue in the lawsuit involves how both carriers structure their bundled service offerings. Verizon contends that T-Mobile failed to provide apples-to-apples comparisons by understating the savings Verizon offers when bundling streaming services. Examples include Verizon’s combinations of Netflix with HBO Max, or packages combining Hulu with Disney+ and ESPN+.
The complaint argues these bundling options significantly reduce the actual cost difference between the two carriers. However, T-Mobile allegedly omitted these discounted bundle prices from its advertising comparisons, according to the false advertising lawsuit.
Market Position and Financial Stakes
The legal battle comes as both companies compete intensely for market share in the U.S. wireless industry. According to their respective financial reports, Verizon maintained 146.9 million subscribers as of December 31, while T-Mobile reported 139.9 million subscribers as of September 30. Meanwhile, AT&T Mobility ranked third among national carriers with 120.1 million subscribers as of December 31.
These subscriber numbers underscore the competitive pressure driving aggressive marketing campaigns. Additionally, the relatively narrow gap between Verizon and T-Mobile’s customer bases suggests even small shifts in consumer perception could significantly impact market positioning.
Legal Remedies Sought
Verizon’s complaint seeks triple damages under the federal Lanham Act, which governs false advertising claims in commercial disputes. The lawsuit also requests damages for alleged violations of New York state laws prohibiting unfair competition and deceptive trade practices. In contrast to purely financial remedies, Verizon additionally seeks an injunction to halt the challenged advertisements immediately.
T-Mobile, headquartered in Bellevue, Washington, declined to provide immediate comment when contacted about the lawsuit. Verizon representatives also did not respond to requests for additional comment beyond the court filing.
The case will proceed through federal court proceedings, though no hearing dates or preliminary decisions have been announced. Authorities have not indicated a timeline for resolution, and the duration of such commercial litigation can vary considerably depending on the complexity of advertising claims and evidence presented.
