T-Mobile made a splash last week when it announced it would begin carrying the iPhone without a contract. The company has also made headlines with a new advertisement campaign claiming
We’re cancelling our membership in the out-of-touch-wireless-carrier club.
But are they?
Let’s move away from the iPhone to a more concrete example – a phone T-Mobile is already offering, the incredibly popular Samsung Galaxy S 3. Have a look at the website. A normal impression is that the phone costs just $69.99 plus $20/month. But that’s not the whole story.
You see, that $20/month doesn’t cover actually using the phone. In reality, it’s just an installment plan that ends up costing you the same amount of money as buying the phone outright. You’ll still need to pay $50/month for phone service. So, consumers, that’s $69.99 up front plus $70/month (not $20)…quite a difference.
What’s more, the service plan claims it provides unlimited talk, text, and web. Ha! In reality, consumers only receive 500 MB of data before T-Mobile begins throttling (slowing) your service. Sure, there’s no overage charges; but throttled data is hardly “unlimited.”
In T-Mobile’s defense, the fine print can become clear with some in depth research and, perhaps, a call to customer service. As an added point in T-Mobile’s defense, their service is excellent in the Washington, DC area.
Still, this new ad campaign of “simplicity” and “meeting the customer’s needs” rubs me the wrong way. In my book, “simple” doesn’t include confusing and mislabeled installment plans masquerading as affordable pricing schemes.
Hey, John Legere (CEO of T-Mobile America), no matter what you say, you’re still a member of the “out-of-touch-wireless-carrier club.”
The Monday Roundup – a weekly collection of top consumer-related news just for you.
Four years ago, I began representing victims of fraudulent schemes who filed suits against banks for providing the financial services that were essential to perpetrating the fraud. We developed our case on the theory that the banks (some of the largest in the land) aided and abetted the fraud. These cases seemed like “no brainers.” A slick Ponzi Schemer (in one case he had just been released from a federal prison (for fraud no less)) who begins using a bank as his financial back office – who wouldn’t think the bank should be held accountable? The Ponzi Schemer deposits tens of millions without any sign of an actual operating business (hmmmm) and uses the bank to transfer funds overseas (can you say money laundering) – all the while receiving advice from branch employees and bank officers about how to increase financial efficiency. In one particularly shocking case, a bank employee worked directly for the Ponzi schemer as an “embedded” employee. But alas the timing wasn’t right and without exception these cases were dismissed. But times “they are a changing”
DOJ appears to be willing and anxious to prosecute financial fraud against enablers including: banks, third-party payment processors and other financial institutions who “provide the scammers with access to the national banking system and facilitate the movement of money from the victim of the fraud to the scam artist.” This initiative seems to be the brainchild of Michael Bresnick, who heads up Continue Reading
Here it is…Our weekly collection of the most interesting articles and stories for consumers. Enjoy.
Remember, if you’ve been the victim of a scam, bought a product based on false representations, or suffered discrimination in any form, contact us to discuss your options.
I’m going to look in my crystal ball and predict that the next big consumer protection fiasco will be food labeling. Last year we saw the “pink slime” scandal result in the product’s removal from a lot of hamburgers. Consumer outrage over discovering the presence of pink slime in our beef supply was so strong that he USDA felt the need to justify its approval of pink slime as “safe,” in this statement. Lately, we’ve seen Europe erupt over a horsemeat scandal. The New York Times noted that:
“The discovery of horse meat in products labeled as beef in the European Union has raised serious questions, not just about food labeling, but also about food safety and the working of the somewhat opaque, global horse meat industry.”
What grabs my attention about this quote isn’t the “ick” factor about eating horsemeat, but rather the “somewhat opaque” horse meat industry. From a consumer’s perspective, an area you do NOT want to be full of mystery and fly-by-night standards is the food you eat.
People naturally have a visceral reaction when they hear about problems with food. People might get upset if a coupon they have isn’t honored, or their car manufacturer won’t fix a recurring problem under warranty, but when it comes to food, the response is frequently a gut-wrenching, “Eww,” accompanied by a nose wrinkled in disgust. The problem is that we have only begun to scratch the surface Continue Reading
Here is your weekly Monday Roundup from sites we enjoy and frequent:
Whistleblowers often risk retaliation in their quest to report wrongdoing. Retaliation can take the subtle form of poor performance reviews or another “just missed promotion,” or the more extreme form of outright firing someone. As the New York Times reports, Mr. Jason Williams experienced retaliation in the form of reduced pay and verbal abuse.
Williams used to be an executive at the Pacific Investment Management Company (“Pimco”), a huge money management firm, where he worked for over ten years. In Williams’ position as a high-yield bond portfolio manager, he saw a whole slew of misdeeds, insider trading, manipulating rates and values of holdings to scam clients, you know, all the most popular securities violations, being performed by senior management at Pimco. We’ve seen the banking and finance industry exposed in scandal after scandal as one who has done the math and concluded that violating securities laws is more profitable than following them – even if you get caught once and a while.
Williams was not comfortable with this. He reported the wrongdoing to internal compliance officers, who told his supervisor. Pimco allegedly undertook a review of all Williams’ concerns and found nothing. What a surprise.
But Pimco did find something for Williams, reduced pay and verbal abuse. Continue Reading
This week, March 3rd – 9th, is the fifteenth annual National Consumer Protection Week (NCPW). Yes, it is an important time to spread awareness of common scams and problems that consumers encounter. But more importantly, it is an opportunity for us to reflect on what exactly “consumer protection” means.
The White House issued a Presidential Proclamation for 2013’s NCPW last Friday. President Obama offers us one view of what NCPW stands for:
Over 4 years ago, widespread abuses in America’s financial system nearly brought our economy to its knees. Millions saw their life savings erode, businesses shuttered their doors, and families were devastated by job loss and foreclosure. This crisis cast a harsh light on the breakdown in oversight that led to an epidemic of irresponsibility, and it highlighted the need for common-sense regulations to protect the vast majority of Americans from the reckless actions of a few. During National Consumer Protection Week, we remember those lessons, and we recognize that our shared prosperity depends on empowering all Americans to make sound decisions for themselves and their families.
I think the key word here is “empowering.” When talking about consumer protection it’s easy to get lost in the “protection” part. Warning people of scams, making sure companies follow certain rules – these are important. But it’s more important to make sure consumers know that they have the power to make changes (and, of course, to protect themselves). A single consumer voice might get lost in the shuffle, but when thousands of consumers join voices to protest a particular practice, things change.
Happy National Consumer Protection Week!
Here is your weekly Monday Roundup from sites we enjoy and frequent:
- National Consumer Protection Week
“National Consumer Protection Week (NCPW) is a coordinated campaign that encourages consumers nationwide to take full advantage of their consumer rights and make better-informed decisions.” This site is a “home-base” for NCPW – use it to find out whats going on across the country!
- FCC To Look Into Legality Of Unlocking Cellphones…
Ever used an unlocked cell phone? That may soon become a thing of the past…
- Senator Seeks More Data Rights for Online Consumers
If you are a fan of privacy, especially online privacy, you will be interested in this bill. Senator Rockefeller (D-WV) introduced the “Do-Not-Track Online Act of 2013” – is this the beginning of consumers taking back control of their own data?
- Even If It Breaks Up Viacom Bundle…
Is the time of a-la-carte cable station choices coming? At least this is a step in the right direction…
- Consumer spending rose slightly in January…
The fiscal cliff tax increases appear to be coming out of consumer’s “savings” column instead of its “spending” column because spending is going up.