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Cablevision Told To Change Advertising Claims

Posted on: Saturday, 28 March 2009, 11:50 CDT

Responding to complaints from competitor Verizon Communications Inc, the advertising industry's self-regulatory body said on Thursday that Cablevision Systems Corp should stop saying its Internet service is “the fastest around,” the Associated Press reported.

The National Advertising Division Council of Better Business Bureaus (NAD) also said Cablevision should stop advertising as “America's most advanced fiber optic network”. Cablevision uses optical fiber in its network but connects homes with coaxial cable, not optical fiber.

In New York and New Jersey, Verizon's new FiOS service, which competes with Cablevision, does draw optical fiber all the way to homes. As a way to counter Verizon's marketing, cable companies around the country have been claiming in ads that their networks "are fiber."

Cablevision is free to say it has an “advanced hybrid fiber optic network,” according to the NAD.

The NAD supported Cablevision's claim that its cable modems are up to five times faster than Verizon's DSL service, which predates FiOS.

Cablevision spokesman Jim Maiella said the company would take the NAD's opinions into account for future advertising.

Verizon’s FiOS can do 50 megabits per second compared to Cablevision's Optimum Online Internet service that has a maximum download speed of 30 megabits per second.

Last year, Cablevision challenged Verizon's advertising claims for FiOS.

Verizon, however, was told by the NAD to stop claiming that FiOS produced a TV picture that's "so much more bright," as the brightness of a TV picture depends on the settings of the TV and has nothing to do with the on the signal.

The state of New Jersey sued Verizon last week, claiming the company charged consumers higher prices for FiOS than those quoted in door-to-door solicitations and ads.

Verizon has disputed the allegations.

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On the Net:

• Cablevision
• Verizon
• NAD

Source: redOrbit Staff & Wire Reports

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