T-Mobile CEO John Legere has said it's time to "stop the bullshit" in wireless plans.
Ferguson's office proactively investigated T-Mobile's claims after seeing the ads, without receiving any complaints from consumers that they had been deceived, Sellis said.
Because T-Mobile USA is based in Bellevue, Washington, the state's attorney general can regulate its advertising practices nationwide, she said.
In the settlement, T-Mobile agreed to not misrepresent the terms of its contracts, to make clear the consequences of canceling a plan, to more clearly state the true cost of the equipment it sells and to train its customer service representatives to make full disclosures. Staff have to be trained within 21 days. The carrier also agreed to pay US$26,046.40 in costs and attorney's fees.
Consumers who bought a T-Mobile phone and service under these plans between March 26 and April 25 can cancel their service and get a full refund. T-Mobile will notify those customers by email and follow up with a postcard if the email bounces back, Sellis said. Once they're notified, customers will have 30 days to return their phones, at T-Mobile's expense.
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