T-Mobile no-contract advertising deemed deceptive by Attorney General

April 25, 2013
5

T-Mobile announced their new UNcarrier approach back in late-March and since that point they have begun offering the new Simple Choice plans. These plans are being touted as not having a two-year agreement and while that seems to be an accurate description, there is a catch. These plans offer devices with an initial downpayment followed by an additional 24 monthly payments.

Basically, while not technically on-contract, those 24 payments essentially lock the user in for the same two-years. There is the option to pay full retail up front, however the Attorney General has recently taken issue with what they are describing as "T-Mobile's deceptive no-contract advertising." The Attorney General has said their job is to defend customers and ensure truth in advertising and as such, they have filed a court order with T-Mobile.

It was said that T-Mobile has been cooperating and as a result, they will be required to adequately disclose that customers who leave before those 24 payments are taken care of, would be required to pay the balance in full upon cancellation. Other points as cited in this court filing include how T-Mobile cannot misrepresent customers’ true obligations as well as how they need to train customer service representatives to comply with the settlement within 21 days of signing.

Basically, it looks like those venturing into a T-Mobile location a few weeks from now will be getting quite a bit more information at the time of purchase. Additional points in this court order touch on how T-Mobile will need to instruct representatives to fully disclose obligations under the terms of its contracts, develop a “Frequently Asked Questions” on the topic and clearly state in all advertisements the true cost of telephone equipment.

[via 9to5 Mac]


Recent Stories

  • http://www.facebook.com/people/Mike-Dye/575025297 Mike Dye

    This is so stupid! the service is still no-contract how is that hard to understand. You are financing the phone with a down payment and no interest. There is no contract for t-mobiles service.

    • juju

      wrong

      • Gilbert Gonzalez

        How is this wrong? Sounds right to me.

  • Noel

    I think it is self explanatory…if u bring ur device u dont have to sign a contract. Tmo has made it easier to buy a new device on a payment plan if you don’t want to pay full price up front. There is still no contract except for your obligation to pay off your device. I don’t see how this is deceptive advertising.

  • Gilbert Gonzalez

    Leave it to the government to step in and tell a company that is moving in the RIGHT direction, that their doing something “deceptive”. Oh the irony…the GOVERNMENT telling someone else they are Deceptive……only in America I tell ya.