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T-Mobile in hot water over new "no contract" carrier plan

Apr 26 2013, 1:48am CDT | by , in News | Technology News

T-Mobile in hot water over new "no contract" carrier plan

Washington State Attorney General Bob Ferguso has accused T-Mobile of deceptive advertising. T-Mobile agrees to cooperate by signing an Assurance of Discontinuance (AOD).

It seems that T-Mobile's controversial "Uncarrier Plans" are taking its toll on the carrier. When T-Mobile announced the Uncarrier Plans last month, many were happy to hear the "No-Contract" advertising. But apparently that's just one side of the story. Bob Ferguso, a Washington State Attorney General, recently asked T-Mobile to amend what he calls as "deceptive advertising that promised consumers no annual contracts while carrying hidden charges for early termination of phone plans."

Ferguso firmly believes that T-Mobile failed to disclose a "critical" part of the new plan which will require subscribers to pay for the full balance owed should they decide to cancel their subscriptions. T-Mobile might be offering a “no restrictions” and “no annual contract," but the carrier is not telling customers that they are required to avail a wireless service agreement with T-Mobile for the entire 24 months. Now, T-Mobile is forced to cooperate with Ferguso, signing an Assurance of Discontinuance (AOD). T-Mobile has agreed to allow customers to cancel their service plans without being required to pay the remaining balance owed by their devices. However, under the terms of the agreement, the availed equipment has to be returned. 

Source: Washington State Office of the Attorney General

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