![]() ![]() Some customers verified through Apple that their "new" phones purchased from Metro by T-Mobile had been previously activated, the lawsuit said. Metro by T-Mobile stores "do not advertise that they sell used phones," but "dozens of NYC consumers in the last three years have complained that the phones they bought from NYC Metro Stores were used," the lawsuit says. "Though we can't comment on the specific claims at this early stage, what we are seeing alleged here is completely at odds with the integrity of our team and the commitment they have to taking care of our customers every day," T-Mobile said. When contacted by Ars, T-Mobile said it "take these allegations very seriously" and is "continuing to investigate so we can respond to the City." "We are doing everything in our power to make sure that T-Mobile ends these deceptive practices and that customers who were taken advantage of get the restitution they are owed." "Companies that blatantly scam New Yorkers must be held accountable," Mayor Bill de Blasio said in the city's press release. The city's lawsuit seeks forfeiture of revenue in order to create "a restitution fund to compensate New Yorkers scammed at Metro stores." The city said it is also seeking to have T-Mobile "notify all major credit bureaus that the financing contracts were fraudulent so that related information can be removed from the consumers' credit reports, and to pay civil penalties." "Metro also charged several customers undisclosed and illegal activation fees, and for unwanted products and services like GPS navigation, extra lines, and hotspot capability." "Some Metro stores sell phones at a discount, but then add taxes on the much higher, pre-discount figure, which is illegal under state law," the city said. Metro stores charged "illegal taxes, mystery fees, and fees for unwanted services," the city said. The defendants "violated the City's Consumer Protection Law thousands of times," the city said in a press release today. T-Mobile owns some Metro stores directly, while others are owned by dealers that "contract with MetroPCS NY for permission to operate under the Metro brand," the lawsuit said. ![]() AdvertisementÄefendants include T-Mobile, T-Mobile's MetroPCS New York division, and various owners of Metro stores. The NY Supreme Court is a trial-level court New York's highest state court is the Court of Appeals. The lawsuit was filed in the state Supreme Court for New York County. ![]() For example, of the 21 phones that DCA identified as used, most were iPhones that cost several hundred dollars each. The deception costs consumers considerably. This illegal activity is pervasive, spanning 56 locations across all five boroughs of New York City, and includes both "authorized dealers" and stores directly operated by T-Mobile's subsidiary, MetroPCS NY. The Metro website, which is owned by T-Mobile and emblazoned with the "Metro by T-Mobile" logo, deceives consumers about its stingy return policy: it advertises a "30-day guarantee" on all Metro cell phone purchases, but the fine print reveals that returns or exchanges are only available for a small sub-category of transactions, and only within seven days of purchase. The Metro by T-Mobile abuses "do not end at the store," the NYC lawsuit says: T-Mobile has stressed that Metro and itself are one and the same, announcing that "Metro by T-Mobile is T-Mobile," the lawsuit noted. T-Mobile's Metro division offers prepaid service over the T-Mobile wireless network and is branded as "Metro by T-Mobile." It was known as MetroPCS until a 2018 rebranding. "At least several dozen have sold used phones to consumers as though they were new, charged consumers for fake taxes and unwanted services, or enrolled consumers in expensive financing plans without their consent." "Abusive sales tactics are rampant at Metro stores," the complaint says. The New York City government sued T-Mobile yesterday, alleging that its Metro stores routinely use "abusive sales tactics" such as selling used phones as if they are new and charging customers for services they didn't order. Getty Images | NurPhoto reader comments 82 with ![]()
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