Federal judge has granted preliminary injunction that stops South...

ads were “very funny” and even memorable, Charter probably would win its suit on false advertising claims at trial and was suffering irreparable harm from ads. Perry referred case to mediation, saying “the time is ripe for meaningful settlement discussions.” Under order, Southwestern Bell is enjoined from airing its “Cable Modem Slowdown” ad campaign, which included TV commercials showing drowsy family scheduling Internet use after 10 p.m. to avoid peak usage times. Campaign included similar radio commercials and Web page references, as well as published materials. Southwestern Bell was promoting its own DSL service as better. “The message of the ads is false and that falsity is likely to deceive the consumers because it is material to the target audience’s purchasing decision, and the ads are likely to injure Charter,” Perry said in her ruling. Charter filed its lawsuit in Aug. (CD Aug 30 p5), contending that Southwestern Bell had violated federal Lanham Act, which governs truth in advertising and unfair competition. Spokesman for SBC, Southwestern Bell’s corporate parent, said that while company executives were disappointed with decision, they intended to prove their case at trial. Although company said it would honor decision and pull ads, spokesman said: “What we continue to attempt to do is educate our consumers about broadband choices.” He said cable companies had roughly 70% of the broadband market nationwide, which he called stranglehold. Ads ran in 13 states served by Southwestern Bell and other SBC subsidiaries.