Today Washington State Attorney General Bob Ferguson ordered T-Mobile USA to stop deceptive advertising for its “no contract” plans.
“If it seems too good to be true, often it is, and that was the case here,” Ferguson told KUOW’s Ross Reynolds on The Conversation.
In a new ad campaign, T-Mobile touted plans with no annual contracts and the tag line: “You don't have to serve a two-year sentence to join T-Mobile.”
Ferguson says the advertising is deceptive because the company continues to charge customers the full remaining cost of discounted cell phones if they cancel before their contract is up.
T-Mobile has agreed to stop the advertising under a settlement reached with the state Attorney General’s Office. Customers who already signed up can get full refunds and get out of the plans at no additional cost, Ferguson said. The settlement impacts consumers throughout the entire country. "No matter what state you are in, this is a significant settlement that gives relief to consumers, not just in Washington state, but across the country," said Ferguson.