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 $26,046.40 in costs and attorney's fees.
As part of the settlement, T-Mobile signed an Assurance of Discontinuance that was filed in King County Superior Court, but the two parties reached the agreement voluntarily out of court, and the settlement was not the result of a court action.
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.