T-Mobile to Change 'Deceptive' No-Contract Ads, Offer Refunds

Washington state Attorney General Bob Ferguson has ordered T-Mobile to alter its new "Uncarrier" advertising strategy, calling its contract free claims "deceptive."

Alongside the launch of the iPhone 5 earlier this month, T-Mobile rolled out new rate plans, which are designed to separate device costs from service costs. To purchase a device like the iPhone 5, T-Mobile customers make a small downpayment and pay off the rest of the cost over a two-year period, while also paying for a separate service plan.

tmobileAccording to Ferguson, T-Mobile has failed to clearly state that while there is no annual contract for T-Mobile subscribers, customers who cease using T-Mobile's service must pay off the remaining cost of the device.

"As Attorney General, my job is to defend consumers, ensure truth in advertising, and make sure all businesses are playing by the rules," Ferguson said. "My office identified that 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."

As a result, Ferguson entered into a court ordered agreement with T-Mobile that will require the carrier to explicitly disclose the details of its contract free plans both through its advertisements and with employee training.

T-Mobile cooperated with the Attorney General's Office in signing an Assurance of Discontinuance (AOD) filed in King County Superior Court today. Under the AOD, the company agrees not to:

-Misrepresent consumers' obligations under its contracts, including those contracts that have not restrictions or limitations; and
-Fail to adequately disclose that customers who terminate their T-Mobile wireless service before their device is paid off will have to pay the balance due on the phone at the time of cancellation.

The agreement also requires T-Mobile to offer full refunds to customers who purchased T-Mobile service and equipment between the dates of March 26 and April 25, 2013. Subscribers who purchased phones during this time period can cancel their service plans and receive device refunds without the need to pay the remaining balance on the device.

Popular Stories

iOS 26

Everything New in iOS 26.2 Beta 3

Monday November 17, 2025 3:20 pm PST by
Apple provided developers with the third beta of an upcoming iOS 26.2 update, and there are still new features that are being added with each beta that we get. We've rounded up all of the changes that Apple made in beta 3. AirDrop Apple added new AirDrop functionality, providing a way for two people to share files temporarily without having to add one another as contacts. iOS 26.2...
applecare apple care banner

Apple Brings New AppleCare+ Options to India

Tuesday November 18, 2025 8:42 am PST by
Apple today announced an expansion of AppleCare+ coverage in India, with new options for monthly and annual plans, and the addition of Theft and Loss for iPhone for the first time. Options for monthly and annual AppleCare+ plans in India provide more choice and flexibility, allowing users to keep coverage for as long as they require. Apple's vice president of Worldwide iPhone Product...
iPhone 17 Pro Cosmic Orange

10 Reasons to Wait for Next Year's iPhone 18 Pro

Wednesday November 19, 2025 4:00 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
Apple Wallet ID Illinois

iPhone Driver's License Feature Launching in Illinois

Tuesday November 18, 2025 8:47 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Starting this Wednesday, November 19, the feature will be available to residents of Illinois. The announcement confirmed that the...
iPhone 17 Pro and Air N1 Feature

iPhone 17 vs. iPhone 16 Wi-Fi Speeds: New Study Reveals the Winner

Tuesday November 18, 2025 10:53 am PST by
A new study has revealed that the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air achieve significantly faster average Wi-Fi speeds compared to the iPhone 16 series, thanks to Apple's custom-designed N1 chip. The study was conducted by Ookla, the company behind the popular Speedtest website and app. It said the results are based on global, crowdsourced Speedtest user data...
ipad mini 7 feature red and blue

iPad Mini 8: Four Major New Features to Expect

Wednesday November 19, 2025 7:50 am PST by
Apple's eighth-generation iPad mini is highly likely to arrive next year, offering a significant refresh of the device with at least four major new features. OLED Display The next-generation version of the iPad mini could feature an OLED display, as part of Apple's plan to expand the display technology across many more of its devices. Apple's first OLED device was the Apple Watch in 2015, ...
macbook black friday

The Best Early Black Friday Mac Deals

Tuesday November 18, 2025 7:32 am PST by
We're getting closer to Black Friday, which lands next week on Friday, November 28. In the lead-up to the shopping holiday, we're tracking a few lowest-ever prices on Apple's most popular Macs, including the M4 MacBook Air and brand new M5 MacBook Pro. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment,...
Magic Keyboard Touch ID Feature

Apple Releases New Firmware for 140W USB-C Power Adapter, Magic Keyboard and Magic Trackpad

Tuesday November 18, 2025 1:05 pm PST by
Apple today released updated firmware for several accessories, including the 140W USB-C Power Adapter, the Magic Trackpad 2, the Magic Trackpad USB-C, the Magic Keyboard with Touch ID, and the Magic Keyboard with Touch ID and Numeric Keypad. There is no word on what's included in the updated firmware at this time, but it could offer performance improvements and security updates. Accessory...
best early black friday deals

Best Black Friday Apple Deals Live Now - Save on AirPods, iPads, and Apple Watches

Saturday November 15, 2025 1:45 pm PST by
We're officially in the month of Black Friday, which will take place on Friday, November 28 in 2025. As always, this will be the best time of the year to shop for great deals, including popular Apple products like AirPods, iPad, Apple Watch, and more. In this article, the majority of the discounts will be found on Amazon. Note: MacRumors is an affiliate partner with some of these vendors. When ...
Apple Sports App Preview Feature

Apple Sports App on iPhone Now Available in More European Countries

Monday November 17, 2025 6:27 am PST by
The free Apple Sports app on the iPhone was released in additional European countries today, including Belgium, Croatia, Czechia, the Netherlands, Luxembourg, Poland, Hungary, Denmark, Finland, Norway, Sweden, Switzerland, Slovakia, Slovenia, Serbia, Greece, Estonia, Latvia, Romania, Ukraine, and others. The app was already available in the U.S., the U.K., Canada, Austria, France, Germany,...

Top Rated Comments

komodrone Avatar
164 months ago
"...but I thought I can just sign up and cancel to get a super cheap phone. T-mobile is so deceptive!"
Score: 40 Votes (Like | Disagree)
Gasu E. Avatar
164 months ago
It's good we have Attorneys General to protect idiots from themselves. Otherwise, the idiots would quickly die out, and brainy people would be forced to take your fries order.
Score: 28 Votes (Like | Disagree)
newagemac Avatar
164 months ago
I'm pretty sure this was lobby money from Verizon and AT&T at work. The uncarrier campaign sure must have been hurting sales. There isn't a single person who thought you could sign up with T-Mobile and cancel the next day with a free iPhone like this AG is suggesting.

There is no contract with the wireless service. The phone isn't free. Everyone already knew that but of course this wasn't ever about "protecting the consumer" it was about protecting the big duopoly we have going on here in the U.S.

Case in point, this buffoon was no where in sight with AT&T reneging on its "unlimited" contract, blocking FaceTime for a long time, and all sorts of other real chances to protect the consumer. Of course he'll come out swinging for the AT&T lobbyists lining his pockets though.
Score: 17 Votes (Like | Disagree)
ouimetnick Avatar
164 months ago
The picture with the misspelling of OUR to ARE was a leaked photo. It was discussed a few weeks back. T-Mobile corrected that mistake when they went public with everything. Not sure why MR is using old leaked material here. :rolleyes:
Score: 17 Votes (Like | Disagree)
econgeek Avatar
164 months ago
In other words, the remnants of US West aka QWEST, got their political crony to force a competitor to make their advertising less compelling, because it was hurting sales.

Protection of consumers never entered the picture.
Score: 17 Votes (Like | Disagree)
HenryDJP Avatar
164 months ago
I already mentioned a couple of weeks back that while T-Mobile's business plan SEEMS doable, there's always a "Gotcha". Gotta love how they misspelled OUR and wrote ARE. How much money does this company have? Weaksauce. :rolleyes:
Score: 14 Votes (Like | Disagree)