T-Mobile's CEO, John Legere, has made T-Mobile the "best wireless carrier," according to consumer reports. At the time of that glowing report, T-Mobile had passed by Sprint to become the third largest wireless carrier in the United States. \({ }^{1}\) That growth and recognition was largely the result of Mr. Legere's ads that touted T-Mobile's program of equipment installment plans. Under this T-Mobile plan, customers receive their phones on two-year loans. Those plans must be paid off in 24 months and have a lump sum due if the customer exits the plan. However, T-Mobile indicated in its ads that customers could switch phone plans at any time.

However, the Federal Communications Commission (FCC) and state consumer agencies began to receive complaints related to that exit claim. In 2015, the New York Attorney General opened an investigation into the ad claims with a letter to T-Mobile that asked the company for voluntary changes on its ads and programs. The letter expressed concerns that under the actual T-Mobile terms, customers may actually end up paying more under the equipment installment plan than if they were to simply break a traditional service contract. The allegations in the complaint are based on the age-old advertising ploy of "bait-andswitch." A business advertises one product or service but then talks the potential customer into a different, more expensive product or service because the product or service actually advertised does not truly exist.

In April 2016 Moshe Fahri filed a class-action suit against T-Mobile for deception in its ads that touted "no contracts" and "no hidden fees." The suit alleges violations of the Florida Consumer Collection Practices Act and the Florida Deceptive and Unfair Trade Practices Act. Mr. Fahri's specific allegations are that he purchased four iPhones in June 2015 from T-Mobile for a total of \(\$ 2,600\), under the impression that there were no contracts and no hidden fees. After two months, Mr. Fahri canceled the agreement because he was not satisfied with T-Mobile service. T-Mobile then sent him a bill for the remainder due on his \(\$ 2,600\) purchase. The suit is brought on behalf of all Florida residents who faced similar circumstances and were sent a bill for remaining amounts when they tried to leave T-Mobile.........

Discussion Questions
1. Explain what "bait and switch" is.
2. Describe T-Mobile's history on advertising issues.
3. Why are there so many issues and actions related to cell phone ads?