T-Mobile US Inc (NASDAQ:TMUS) will have to defend itself against allegations that its advertising campaigns cross the line when it comes to ethical business practices. Three labor unions allege the carrier continues to deploy deceptive advertising tactics.
FCC Complaint Filling
International Brotherhood of Teamsters, the Service Employees International Union, and the United Farm Workers of America also allege the carrier continues to place customers on services they never asked for in the first place.
A filed complaint with the Federal Communication Commission asks the agency to investigate T-Mobile US Inc (NASDAQ:TMUS) with the view of asking it to change its practices. The unions have already formed a group, Change to Win Retail Initiatives, to spearhead their complaints.
T-Mobile aggressive efforts to win customers have seen it topple Sprint on market share in the wireless business. Growth has come in part of its effort to market itself as ‘Uncarrier’ as it continues to advocate for the eradication of carrier contracts and devices contracts. Its efforts seem to be paying off having added more than 27 million since it started advocating for the same in 2013.
Unethical Business Practices
The impressive run is however not going well with some people. There have been growing concerns that the company continues to sign up customers for services they never ordered for in the first place. The trade union’s group alleges that T-Mobile US Inc (NASDAQ:TMUS) flashy marketing is not what it seems to be, when one reads the fine print.
T-Mobile’s no-contract plans require subscribers to buy an installment or lease a phone. Canceling the service most of the time forces consumers to incur unpaid costs for their phones that can be more than a two-year contract offered in other carrier’s plans.
The group on its filing to the FCC raises the red flag on the add-on services such as phone insurance plans, upgrades to unlimited data plans and leasing program that the company offers. Having analyzed complaints filed by some users, the group says that most of them had trouble canceling the programs even on not subscribing to them in the first place.
T-Mobile US Inc (NASDAQ:TMUS)’s Retail employees have already admitted to being under pressure from their bosses to enroll as many people as possible to the programs.
