A recent "free" phone offer turned out to have hidden catches.

A dispute between Verizon and AT&T highlights the common, and often confusing, tactics used in carrier advertising.

If you’ve ever searched for a new phone, you’re aware that carrier promotions can be confusing, especially the ones using the word "free." Recently, Verizon was scrutinized after AT&T challenged a Verizon ad for the new Google Pixel 10 Pro with the National Advertising Division (NAD).

AT&T argued that Verizon's advertisement suggested the new Pixel was free with any plan. However, the offer was reportedly limited to customers subscribing to Verizon's highest-priced plan, the Unlimited Ultimate tier.

Before the NAD, an advertising industry self-regulator, examined the case, Verizon said that it would permanently stop running the commercial. Consequently, the NAD closed the case, which is considered the same as a loss for Verizon.

Although the ad has been taken down, it is currently still available online.

This situation highlights the need for caution with carrier promotions. The term "free" usually involves conditions. While AT&T challenged a competitor, they also offer similar promotions.

These "free phone" deals typically provide monthly bill credits over a 24 or 36-month period. Customers must maintain a specific, often premium, unlimited plan during that time. If a customer switches carriers or changes plans early, they will owe the remaining balance on the phone.

This is a common strategy employed by major carriers to keep customers on their more expensive plans. While Verizon's ad may have been overly broad, this practice is typical in the industry.

This situation is ordinary in the wireless industry. Carrier advertising is often created to attract customers, while obscuring the important details. Verizon's removal of the ad was appropriate, but it only happened due to a challenge from a competitor.

It is wise to be doubtful of any "free" phone deal. Prior to committing, calculate the total expense over the contract period, factoring in the cost of the required monthly plan. It is often more economical to purchase an unlocked phone and select a more affordable plan. This serves as a reminder to advocate for yourself when considering carrier deals.