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T-Mobile agrees to change 'deceptive' no-contract ads in deal with Attorney General

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T-Mobile exec with Lots of Paper
T-Mobile exec with Lots of Paper

T-Mobile may be trying to "unleash" customers from lengthy cellular contracts, but Washington State Attorney General Bob Ferguson is taking issue with what he calls the carrier's "deceptive" new ad campaign. Just one month after T-Mobile reinvented itself as the uncarrier, the company has entered into a court-ordered agreement with Ferguson requiring it to make clear the "limitations of its new 'no-contract' wireless service plan."

Mainly, Ferguson doesn't think T-Mobile is being transparent enough about the obligations that come with financing a smartphone. Customers who opt for monthly payments rather than buying a device outright must remain with the carrier for 24 months unless they can pay the entire owed sum off early. "Instead of a 'two-year sentence' for wireless service, consumers face a different two-year 'sentence' to avoid a lump-sum balloon payment for the phone" reads a press release from Ferguson's office.

Moving forward, T-Mobile has agreed to make such restrictions clearer both through marketing and by training its employees to call out the limitations. Additionally, anyone that entered into service with T-Mobile between March 26th and April 25th can now request cancellation and be granted a full refund on their handset. John Legere and Co. will also need to cough up $26,046.40 in legal fees for the AG's trouble. We've reached out to the carrier for a statement regarding today's agreement.