Was this bait and switch and should I bother reporting it?

[davidm]

I decided to get a new cellphone. The old one is wearing out, it loses info, the battery won’t hold a charge as long, etc. Plus, I’d like to have use of some of the newer technologies.

So I went online and found a Razr V3 that comes free with a two year contract and a $36 transfer charge. Fedex shipping was also free. It’s an old model that’s being phased out but it’s much better than my current phone.

I decided to go for it and placed an order. I checked off the option to transfer my existing number and provider to the new phone. I chose the plan that was identical to my current plan, and it accepted my order and shipping information.

I got an email from them with a link to check the status of my order. That was yesterday. I waited till today to check out the link.

The following message appeared:

Your order with AT&T can not be completed based on the information received from your credit check.
AT&T either required a substantial deposit or did not have enough information to complete your order. Please check your email for details.
We will continue to search for an alternate service provider with a comparable rate plan. You may also submit a new order from the Shop by Carrier menu.
If you do not want us to continue to process your order, please click the cancel link below. Thank you for shopping with us.

Of course I freaked out that something had happened to my credit rating (what if my identity had been stolen?) but it turned out that that wasn’t the case.

The page had a link for chatting with a live agent. I clicked it and chatted with “Kavita”. Kavita works for the company that I ordered the phone from. She informed me that if I wish to keep my existing number I’ll have to go with the (more expensive) 900 minutes plan as that’s the minimum plan they offer for existing AT&T customers. I informed her that she should cancel my order and that I may be contacting my state’s Attorney General about bait and switch tactics.

This really pisses me off. It’s like they’re holding my phone number hostage! As long as I keep my old worn out phone I can keep my more reasonable current plan (I never use all of my minutes). If I want to upgrade I have to either pay more per month or get a new number, with all the hassle that entails.

I may shop around to see what kinds of deals other providers are offering since they may be more generous with new customers, but I’ve heard horror stories about trying to switch a number to a different provider.

Is this “bait and switch”? If so, who should I report it to and is it worth bothering?

[MLS]

I think it is. Report it to the consumer protection agency in your state.

[norinew]

IMHO (yeah, I know, wrong forum), before reporting it to any legal person/institution, contact someone at AT&T who has the authority to help you.

This seems slimy to me, but the reps may be instructed to do it. (That doesn’t exactly excuse the rep’s behavior, but does explain it). It’s possible that there are enough people who don’t bother arguing the position, that it’s worth it to them to do it. But I’m guessing if you take it up the chain of command (it could take some time), you should be able to find some satisfaction.

Good luck!

[Mahna_Mahna]

As per Wikipedia:

In retail sales, a bait and switch is a form of fraud in which the party putting forth the fraud lures in customers by advertising a product or service at an unprofitably low price, then reveals to potential customers that the advertised good is not available but that a substitute is. The goal of the bait-and-switch is to convince some buyers to purchase the substitute good as a means of avoiding disappointment over not getting the bait, or as a way to recover sunk costs expended to try to obtain the bait. It suggests that the seller will not show the original product or product advertised but instead will demonstrate a more expensive product.

They agreed to sell you the selected product at the advertised price, not did they present the offer as being for a fully-loaded current model Razr V3xx and then tell you that in fact all they have is the older Razr (or worse, something else entirely). All they did was notify you of the fine print for the deal, which states that there is a minimum monthly plan required to be eligible for the deal.

Common practice among cellular carriers, BTW, both in Canada and the US. Also perfectly legal. The carrier subsidizes the phone, you agree to provide them with your monthly payments for the duration of the term so they can recoup the subsidy (occasionally with a predetermined monthly minimum required), everybody wins because you pay less up front and they make it back over a couple of years (or through cancellation fees if you back out of the deal early)

Don’t like it? Buy the phone at full pop, in which case you won’t be tied down to a contract or to any of the fine print like a plan change, because you outright own the darn thing. AT&T’s website indicates that a full-priced Razr V3 (refurbished) is a bargain at $240 and newer models are going for a measly $350.

North American consumers really need to get over the concept that cell phones are/should be free or close to it. They’re not.

But hey, if you call the customer service number and threaten to go to the competition, they might throw you a bone and offer a nice shiny phone for cheap on your existing plan… but be prepared for them to call your bluff, in which case you should have already made a decision about who gets your business instead.

[davidm]

@Mahna Mahna

…They agreed to sell you the selected product at the advertised price…

No they did not. The product includes a rate plan. The advertised price for the rate plan was $39.99 a month for a set package of services. They advertised that and accepted my order. They then told me that I would have to accept a more expensive package, with more minutes than I need.

I checked the option saying that I wanted to transfer my existing number. Even after that the plans offered to me included the $39.99 plan.

[interface2x]

This pretty much happened to me with a company called Wirefly last year. They shipped the phone to me, explained how to get it up and running with my current number, and all that … of course, neglecting to tell me that the phone couldn’t be activated unless I upgraded my plan. I told them to shove it, explained that it was just about the worst customer service experience I’d ever had, and that they needed to send me a postage-paid package in which to return the phone RIGHT NOW. I was surprised at how little they argued with that plan.

[Mahna_Mahna]

(Disclaimer: I do not work for AT&T or one of its affiliates, nor have I worked for them in the past. I do, however, work in the cellular industry and can tell you that I’ve heard this song and dance many many times before… and the tune never changes, despite the fact that you’d think people would know how this works now that cell phones are ubiquitous.)

So, here’s the Coles Notes.

Cell phone =! monthly package.

A cell phone is an electronic device that permits you to connect to a carrier’s network. The monthly package assigns you with a phone number and a preset number of minutes on that carrier’s network, which you can access using the cell phone. You need both to actually make and receive calls, but that doesn’t make them one and the same - think of one as the car, and other as the gas.

Most carriers will subsidize the phone because those little toys are actually quite expensive and it’s to their benefit to get as many customers as possible subscribing to their monthly service. Cell phones would never have caught on in the North American market if customers had been paying the $500 price tag up front, but it doesn’t hurt so much when that $500 is spread out over a three year contract. Hence the free phones and cheap phones you see - they take the initial financial hit, and recoup the subsidy (and then some) through your fees. Win-win.

I agree, the promo did make it look like you could have your cake and eat it too, but I’m sure a review of the terms and conditions would’ve tipped you off to the catch. To claim true bait and switch, you’d have to prove that the fine print doesn’t indicate that a plan upgrade is required to receive promo price - if that’s the case, then by all means, please contact your local BBB and file a complaint.

Given that these companies hire lawyers by the dozen, though, I can guarantee that their fine print is in order and that your complain will be summarily dismissed.

Caveat emptor.

Anyhoo, that’s all I’ve got to say. This discussion was far less painful back when I was being paid to have it.