{"id":654637,"date":"2013-04-25T21:42:19","date_gmt":"2013-04-26T01:42:19","guid":{"rendered":"http:\/\/www.talkandroid.com\/?p=159572"},"modified":"2013-04-25T21:42:19","modified_gmt":"2013-04-26T01:42:19","slug":"t-mobile-washington-state-ag-agree-to-settlement-on-claims-of-deceptive-no-contract-advertising","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/654637","title":{"rendered":"T-Mobile, Washington State AG agree to settlement on claims of deceptive no-contract advertising"},"content":{"rendered":"

\"T-Mobile\"<\/a><\/p>\n

T-Mobile launched new “no-contract” service plans<\/a> last month in an effort to differentiate themselves in the U.S. market. As we noted when examining the plans<\/a>,\u00a0the new hardware financing options could lead consumers to pay an even greater amount to get out of the non-existent contract than what they would have paid under the old system that used early termination fees. That possibility led Washington’s Attorney General Bob Ferguson to pursue an agreement to get T-Mobile to disclose these new terms in their advertising and offer customers a chance to cancel with no penalty if they were an early adopter of the new plans.<\/span><\/p>\n

T-Mobile’s new no-contract terms offer consumers several options to obtain hardware to use with their new plan. One could use a device they had purchased elsewhere that is compatible with the T-Mobile network or they could pay the full retail price for a device up front. Many consumers will opt for a third option which is a plan that finances their hardware purchase over a set term, typically 24 months. According to T-Mobile’s terms, a consumer is only eligible for a financing plan if they have a valid T-Mobile service contract in place. If service is canceled, consumers are on the hook to make a balloon payment to pay off the remaining balance for their hardware. That could be a large amount if done during the first part of the 24 month financing period.<\/p>\n

In entering into the new agreement that will apply nationwide, Ferguson noted “T-Mobile was failing to adequately disclose a critical component of their new plan to consumers, and we acted quickly to stop this practice and protect consumers across the country from harm.” T-Mobile and the attorney general filed an Assurance of Discontinuance<\/em> today in which T-Mobile agrees to:<\/p>\n