T-Mobile announced their new, no-contract Simple Choice Plans last month. While there are technically no contracts, Washington State Attorney General Bob Ferguson discovered the carrier was failing to disclose important information. Because of this, T-Mobile has now entered into a court-ordered agreement.
From the official press release:
Today, the Attorney General's Office filed a court order signed by T-Mobile and effective nationwide that will ensure the company clearly communicates the limitations of its new “no-contract” wireless service plans and allows customers duped by the deceptive ads to exit their contracts with no penalty.
Under the new no-contract plans, a phone can cost up to $20 per month over 24 months. This is on top of the cost of a data plan, and how T-Mobile makes their money back after selling phones for just $99 or $199.
However, if you decide to cancel your service, you are required to pay for the phone in-full. According to the Attorney General’s Office, this is simply a different kind of two-year agreement, and should have been disclosed in a more direct manner. If you bought a new phone or service from T-Mobile between March 26, and April 25, you can receive a full refund by calling the carrier at 1-877-746-0909.
To make matters worse, T-Mobile is required to contact all customers who purchased between those dates, and “advise them of their right to cancel and obtain a refund”.