AI · SEMICONDUCTOR · FACT CHECK
SKD WIREMostly True
Reports of false and exaggerated advertising filed with the Fair Trade Commission jumped 74 percent following the repeal of the Mobile Device Distribution Improvement Act, commonly known as the handset subsidy law, according to a review of 12 primary sources. The finding confirms the core of the widely circulated claim, though the figures cover the limited period since the law's abolition.
The subsidy law, which restricted the discounts mobile carriers could offer on handsets, was repealed to allow greater price competition in the smartphone market. In the aftermath, the number of consumer complaints and regulatory reports concerning misleading advertising rose sharply, with the 74 percent increase in reports of false and exaggerated advertising standing out as the most notable change.
The claim, as circulated, states simply that reports surged 74 percent after the repeal. The reviewed evidence supports this figure, but the increase reflects a short observation window since the law was abolished, and a rise in reports does not by itself establish a rise in actual violations. No evidence reviewed indicates whether the surge stems from new advertising practices by carriers and retailers or from heightened consumer vigilance following the deregulation.
With the central figure holding up against the available evidence, the claim is rated Mostly True.
Verdict: Mostly True