The Better Business Bureau's National Advertising Division (NAD) has recommended that DirecTV (NYSE: T) change or ditch a TV ad starring model Hannah Davis and a talking horse.
The group's urging comes after Charter Communications (NASDAQ: CHTR) complained about the ad, calling it deceptive.
In its commercial, DirecTV touts that it "has 4K, the best picture quality available." However, the NAD believes this is deceptive, given that the satellite operator only offers a relatively small collection of movie titles in the 4K format.
"In this case, a key issue for NAD was the quantity of DirecTV content available in 4K," the group said in a statement.
"DirecTV is one of only a few television service providers to offer any programming in 4K and NAD determined that the advertiser should be able to promote this benefit," the group added. "However, the advertiser offers only a small number of movies in 4K and not general programming."
Further, the NAD also found that DirecTV falsely implied that subscribers could obtain 4K services for a $19.99-a-month price.
DirecTV plans to appeal the ruling. "DirecTV supports the self-regulatory process and appreciates NAD's efforts in reviewing the challenged advertising," the operator said in a statement. "However, DirecTV disagrees with NAD that the advertising subject to review had the potential to convey any misleading impressions regarding DirecTV's service."
DirecTV is also being sued by the Federal Trade Commission for allegedly misleading customers about two-year contracts in ads. That dispute was set to begin trial last Friday.
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