T-Mobile Forced to Change “Contract” Terms

Over the last several months, we have seen tons of changes being made in the cell phone industry. It all started when the cell phone companies decided to speak with government officials about the potential of illegalizing the jail breaking, or unlocking, of cell phones for use on another carrier’s network. They claimed that this was cutting into their business since they are essentially designing cell phones as a way to lure people into signing a contract with their company.

However, if someone could unlock the cell phone to where it would work with any carrier, they would have no incentive to switch carriers; thus hurting the manufacturing carrier’s company.

Then, we have seen numerous cell phone providers come up with some pretty aggressive plans as yet another way to persuade potential customers to go ahead and sign the contract with them. T-Mobile is the latest company to make a very aggressive offer that should appeal to a lot of cell phone users. They are now offering contract-free cell phone services, which is a great way to escape the thought of being stuck with a provider for two years if their service begins to decline over the course of the contract. Sure, T-Mobile is not the first cell phone service to offer month by month service, but they are the first with a big reputation.

However, T-Mobile is currently dealing with one major problem in relation to their new month to month plans. They had apparently been misrepresenting the cost of the phone and how the financing plans worked when someone would purchase a phone to use on their network. As a result, the Attorney General in Washington State has required them to make some major revisions.

Of the revisions T-Mobile is to make, ensuring that there is adequate information in the contract about the financing plan for the phone and having clear communication about the reprimands of cancelling the contract are two of the biggest issues T-Mobile is to work on. T-Mobile has also been ordered to pay in excess of $26,000 in attorney fees for the revisions.

Along with the revisions T-Mobile is required to make, they also have to give users an opportunity to cancel their current plans and return their cell phones for a full refund as long as they were purchased between March 26 and April 25 and are undamaged.



Jason Russell is our resident technology expert covering everything technology related. He is a total technology geek and no one knows technology better than him.

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