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

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

iphone duo

Apple Announces Foldable 'iPhone Duo'

Wednesday September 9, 2026 10:56 am PDT by
Apple today announced the "iPhone Duo," a new kind of iPhone featuring two screens and a foldable inner display. The two halves of the iPhone Duo connect into a single continuous frame with the same aspect ratio across both displays, and Apple said the transition between open and closed is designed to feel fluid. When fully open, Apple says it is the thinnest iPhone ever made, with an...
Surprise and Shine Live Coverage Article

Apple Event Live Blog: iPhone Duo, iPhone 18 Pro, and More

Wednesday September 9, 2026 9:10 am PDT by
Apple's "Surprise and Shine" event kicks off today at 10:00 a.m. Pacific Time, where we're expecting to see the foldable iPhone Duo, the iPhone 18 Pro and Pro Max, Apple Watch Series 12 and Ultra 4 models, new AirPods 5 earphones, and perhaps some other announcements. Apple is providing a live video stream on its website, on YouTube, and in the company's TV app across various platforms. We...
iOS 27 Feature Dark

Apple Announces iOS 27 Release Date

Wednesday September 9, 2026 10:46 am PDT by
At its event today unveiling the iPhone 18 Pro, AirPods 5, Apple Watch Series 12, and more, Apple announced that iOS 27 will be released later this month. iOS 27 has already been available as a developer beta since June and as a public beta since July, and Apple today said that the update will be released for all users with a compatible iPhone model on Monday, September 14. iOS 27 is...

Top Rated Comments

175 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
175 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)
175 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
175 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)
175 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)
175 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)