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T-Mobile stores may have repackaged used phones and resold them as new, claims a new report. While the first-party stores might not have engaged in such questionable practices, T-Mobile’s third-party reseller stores have allegedly indulged in exploitative and deceptive business tactics.
T-Mobile third-party stores repackaged used phones?
The mass-market mobile business is quite big, and T-Mobile is no exception. This American telecom and internet service provider caters to about 120 million customers. According to T-Mobile’s guidelines, any device a customer returns or turns in, must go to one of the company’s warehouses. The reason for the return does not matter.
Read how shady T-Mobile third-party stores manipulated their own employees (and customers) to push sales over everything else.https://t.co/yZGPk7o5MP
— The Mobile Report (@thetmoreport) July 22, 2024
However, as The Mobile Report reports, GP Mobile, a third-party T-Mobile reseller store, followed a different process. As per an internal presentation slide, GP Mobile employees were told not to return phones to T-Mobile’s warehouse. The reason presented was that the reseller would otherwise take a “loss” on the returned device.
Instead of sending devices back to T-Mobile, GP Mobile allegedly asked employees to “take the return to the store and resale it”. The statement suggests that employees were to repackage a returned phone and sell it again.
Former Third Party T-Mobile Employee Describes Toxic Workplace Culture And Shady Business Practiceshttps://t.co/MDSyqaHhKW
— The Mobile Report (@thetmoreport) July 17, 2024
If that’s not concerning enough, GP Mobile employees may have been urged to disguise a used device as new and sell it to unsuspecting customers. The slide mentions GP Mobile allows employees to “use credits if needed”. The T-Mobile logo is visible on the slide.
Was T-Mobile aware of the shady business practices?
It appears T-Mobile’s Third-Party Retailers (TPR), or dealers for T-Mobile services, were allegedly involved in shady business practices. The report also mentions toxic work culture and pitting TPRs against each other to push sales.
It is important to note that the slide that is the basis for this revelation, talks about Magenta Max, a subscription plan that T-Mobile no longer offers.
T-Mobile employees nationwide are being offered money to engage in illegal SIM swapping activities. This unethical behavior poses a serious threat to customer security and privacy. #TMobile #SIMswaphttps://t.co/UFWdiCkBxI
— Jesse Ben Israel (@jessebenisrael) April 15, 2024
Additionally, the slide mentions 2/26 being a Tuesday, which suggests the slide is from February 2019. This means the slide could be over five years old. It is quite likely that GP Mobile and other T-Mobile TPRs have altered their business practices since then.
Although T-Mobile or its third-party resellers are being accused of repackaging used phones, pushing sales representatives to the edge isn’t a new tactic to boost sales. Many companies tie commission plans and job security to performance. Businesses routinely pressure their sales staff to increase sales and are willing to overlook or condone shady practices.